I need help with analyzing deal in Lakewood

[Moritz Bartels]

Hi guys, this is my first time posting on the forum. I need some help with this deal I found on the MLS, please. All pro forma numbers.

26 door apartment complex in Lakewood, WA. Class C at best. For sale at $1,500,000.

Rent $20,410 per month

Gross scheduled income $245,000

Total expenses $45,000

Taxes $13,000, Insurance listed at $900, which sounds too low to me

I used these numbers in my attached spreadsheet. 

I would pursue deal with a partner. 

Any thoughts? Anything I am missing?

Thanks for your input. 

Moritz

[Steve Vaughan]

Welcome to BP @Moritz Bartels!  Commercial multi's are my favorite.

My insurance rates on $800k rebuilds are closer to $3k.  Yours may be close to double that.

Makes me question the other numbers.

Shady areas are just that. I've learned to avoid them.  Drama and problems.  

Lakewood not in your backyard, so will need a PM?  New horror stories of bad PMs every day.  Take a gander!  Latest today is 'which one to sue' of 3 by same OP.

Does your partner bring skill sets complementary to yours?  One with rehab/repair skills? Tenant placing and mgt skills? 

Partnerships founded only because neither has all the money to do on their own have a higher failure rate.

Just broad stroke observations.  Sorry so negative.  Will leave to others to analyze the numbers.  Being out there analyzing deals is the important thing!  Please keep coming back!