32 Unit Apartment Purchase-Need Help

[Rick Sarouk]

Hi Guys, I am considering purchasing a 32 unit low income complex for $320.00 with the following breakdown:

24- 2bed + 1ba current rent $495.00 under section 8
8 3bed + 1ba - current rent $570.00 under section 8

12 Units currently vacant and have been for 10 months. Will find out precisely why during due diligence. No unit has major damage.. 11 2 bedrooms, 1 3 bedrooms.

Built in 1978

1 car garage and 1 car space each

5 Buildings Total

Pitched Roof

Proximate to shopping, schools, university.

Total Population within local city of $12,000


each unit has individual meters but for some reason previous owner changed units to master hence owner pays for all utilities. The utility expense is $40,000 a year.

Typical vacany 15%

Deferred Maintenance $60,000 approx..

With the above information what do you guys think? Do you think there is potential?