Help Need For A Seven Unit Apartment Building Deal

[Shawn C.]

Hello Everyone,

Let me start by telling you I have only done Wholesaling, Fix & Flips as well as New Construction at this point in my real estate investing career. I have finally decided to try Multi-Family investing.

I contacted the seller about a 7 unit apartment building they have for sale and the asking price is $199,000.00 and they are willing to do seller financing with 20% down. I informed them I have more than the 20% down and I am willing to show proof of funds. After I signed the NDA, they sent me what looks to be an incomplete CAP Rate sheet. They have state total Gross Rents are $47,220.00 total expenses at $18,176.25. Net Income is listed at $29,043.75. They don't have anything listed for property management fees, capital Improvements and I assume they pay all utilities.

They stated it is 100% occupied but on their spreadsheet they only show 6 units rented.

I requested a Profit and Loss statement, Schedule E for the past two years as well as the past tow year worth of tax returns as relating to the property.

Their response is they would not supply that information other then the CAP Rate sheet(they had already provided me) unless a purchase price presented and agreed upon and money is placed in escrow.

Now I know this is one of the first properties I am looking at but am I wrong to ask for this information? I am also going to want to have my property management team and possibly a building inspector inspect the property after reviewing the paperwork to see if it is even worth pursuing and I am now afraid that will also be an issue? Should I just walk away?

Any help or suggestions you can offer will be greatly appreciated.

Thanks,

shawn