9 Unit Apartment -Deal or No Deal?

[Allen Resha]

I have recently came across what appears to be my first big step into real estate, BUT I have 2 problems.  I need a cash investor to get the deal done and I need a very experienced person to help me analyze the deal.  I believe this is beyond a calculator/running comps because of the location.  If you are willing to help with cash or advice please let me know ASAP.  I am looking at the complex tomorrow and I refuse to fail.  I am willing to do 80/20 split.  You get 80 and I take 20 or even a finder's fee for help.  I want to buy and hold.  Asking price is $3.75million and I am 99% sure it isn't worth that and the owner needs to get rid of it ASAP.  I realize that I probably won't find an investor that will take 100% risk, but I am determined to make this happen IF it's the right deal.  So deal or no deal?  

[Azeez K.]

Hi @Allen Resha

In order for anyone with experience to provide you insight on the deal you need to post the numbers and provide some background context. 

1.  How many units?

2.  Monthly rental rent? - are they under rented/ market rents/ 

3. Vacancy - Current vacancy rates?

4. Cap Rate?

5. Net Operating Income 

6. Unit Mix#

7. Exit Strategy

8. Value add potential?

9. Type and quality of construction

10. Age of roof

11. Separate water meters 

12. What's the sellers motivation to sell? are they willing to do a seller carry for 10% or x amount if they want to sell it ASAP

13. # of additional questions to consider before someone with experience can suggest if this is a good deal or not. At the very least provide the Net Operating Income

Finally, what makes you 99% sure that its a deal?