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Updated over 9 years ago, 09/19/2015
new to apartment complex investing
I am a new investor and I have flipped one home and bought one rental in the past 9 months. Both were very good deals for me. My "insider" who brought me the leads on these two has brought a couple of apartment complex deals in front of me. They are out of state about 4 hours away. I feel comfortable analyzing any single or multifamily residence but apartment complexes are another world to me. I'm educationg myself quickly to the numbers (like assume 35-40% total expenses) but can someone tell me if this sounds like a deal worth pursuing?
Very close to major university in urban town so mostly student rentals
Currently 100% rented
13 units , 23 beds
$7,175 month in rents (86.1k/year)
I think I can get the property for around $625k.
Should I stick to what I have been doing (houses) or consider this deal? The place appears to be well maintained and very close to campus. My modeling shows positive cash flow of around $7,600/month. However I get more than that with my rental house although it is on a 30 year personal mortgage and this obviously would be commercial.
Any wisdom appreciated.