Possible Next Deal!!

[Brent M.]

Seven fourplexes (28 units) near the beach in Florida.  Seller has provided 3 years of tax returns and all related documents for expenses.  Appears to be very stable property, decent condition, in a B/B+ area.

Price- $1,750,000

Gross Rents- $220,000

NOI- $185,000 (Seller shows 16% expenses on taxes for past two years- his expenses are tax, insurance, maint)

After i put in Capex, Mgmt, Vacancy, and repair allocation my NOI is $151,000. I will of course be checking to find out about any major repairs due or major expenses in the near future. There's not a lot of room for value add, but I want this to be a solid base to build off of once I move to the area.

I think I'd feel comfortable acquiring for $1,677,000 or lower with 20% down.  Would appreciate any feedback- thanks!!

[Brent M.]

@Ryan Goldfarb  Yes, all utilities are paid by tenants.  Taxes will be reassesed, but it's Florida, not too bad of a hit and I budgeted for them.  I'm going to dig hard for defered maintenance during inspections, but a 3rd party tells me they know the property and it's well maintained.  I'll be checking for late payers as well, but the advantage of a good area is a better class of tenant.  I speak from experience on that one!  This market was hammered during the recession, I think all of Florida was though.  

Appreciate the points!  Part of me does just want to stack cash till the next recession.....