Walk through buying an apartment :)

[Tyler Pertree]

So, I've purchased 6 SFR homes but really want to get into multi-family. My issue is this - Obviously, these are much bigger deals. I don't completely understand the ins and outs of analyzing them and knowing when it's a "buy" or a "pass".

I walked through a deal today, so maybe you all can help me analyze this.

40+ unit apartment building, mid to mid-low end area.  Good school district and 1/4 mile from highway access.  Currently, 8 units vacant, 4 of which are under construction (plumbing issues).  Mix of 2 and 1 bedrooms with rents ranging from $525-595 currently.

Extras:
On site laundry - currently has a company supplying the washer/dryer units and giving 20% of the earnings (while the site is paying 100% of the water/disposal).  So unless my numbers are wrong, it is operating at a loss.  The units do NOT have washer/dryer hookups so this could be extra money if done right?

Rental office has an attached 2 bedroom apartment which can house the on-site manager.  

Technically has a pool area (filled in with dirt currently but is a nice grass landscaped area and brick fenced in).  Good possibility of a "play area" for kids or picnic area for adults with little expense to add this feature.

I went through the financials and it doesn't look fantastic as it's being run now. How should I value this property? Based on NOI only? From what I can tell, the owner has mismanaged this property and it needs some help. What other information is needed to know if this is a "go"?

Thanks for your help!

Tyler