How much would you pay for this 32 unit? got all the #'s.

[Mike Wallace]

32 unit brick. Great occupancy. C+ area. I am very familiar with area, I own other smaller multis and SFH's in same neighborhood.

Current owner seems to keep building in great shape. Well taken care of.

Mechanicals seem to be less then 10 years old.

Heat and hot water is provided via electric baseboard heaters and electric water heaters. Electricity is metered individually to each unit. 

monthly rent $500 ( somewhat low for the area, 525-550 is doable)

monthly water= $600

Taxes yearly= 18,000

Insurance= no idea?

snow/lawn =250 monthly

Random maintenance= $3,000 monthly

I would be managing myself. Whats a fair price? They are asking $950,000. 

[Account Closed]

@Mike Wallace

What city is this in?  How old are the roofs?  Does the parking lot need work?  Are you planning to renovate units or simply raise rents as leases expires?  Do you have experience managing?  Are you going to take a management fee?

What is the current occupancy of the property?  How have collections been on the rent roll?  

Will the property be re-assessed upon a sale?   If so, what is the tax liability exposure?

How do you plan to finance this property?  How much will you put down?

As you can see, it's hard for anyone to give you a remotely accurate idea of what the property is worth without knowing more.  That said, a VERY QUICK back of the envelope looks like the following:

Gross rent = $500 x 32 x 12 = $192,000/year

Less 15% for vacancy, loss to lease, etc = 28,800

Effective Gross Income (EGI) = $163,200

Less 60% operating expenses (you said C+ location) = $97,920

Net Operating Income (NOI) = $65,280

Value at 10% cap = $652,800

Value at 8% cap = $816,000

Keep in mind, this does not include reserves, upfront capex, etc  $950,000 seems pretty high to me.