This is a great deal!.... Right??

[Andrew Davis]

Hey BP Community,

I'm dipping my toes in the apartment water so to speak, and someone brought this deal my way.

Here are the numbers:

$1.2 million purchase

Current occupancy: 58%

Units: 64

Average Rent Per Unit: $550 (conservative)

Area occupancy average (subject property removed): 90 + %

Why so many vacancies?:  Poor management and repairs needed in many of the units.

If I could bring the property up to market averages by renovating the units and getting a decent property manager in there, these are the numbers:

90% occupancy at $550 per unit = Gross Monthly Rental Income of $31,900.

Yearly Gross: $382,800 x 50% rule

NOI: $191,400

Tear this apart, tell me what I'm missing and if I should run for the hills or lock this down?

@Joel Owens, @Jay Hinrichs, @James Wise @Matt Faircloth, @Brandon Turner, @Joshua Dorkin  I would particularly value your input.

Thanks!