What's your opinion on this 7 unit Multifamily ( multi-family)?

[Marshall Zakarian]

I’ve been presented a off-market opportunity 8 unit multi family building in Clawson,MI. The rental roll revenue for 2015 was $51,040 and 2016 was $52,274. The NOI for 2015 was $33,322 and 2016 was $29,313. The owner replaced the roof in 2016.

Also, what are the most beneficial loan options for small multifamily buildings? 

THANK YOU. 

[Marc C.]

Are they 1BR or 2BR units? What is the rent on each? 

What class of property is it? C grade or B grade?

What does the Bigger Pockets buy-and-hold calculator say? https://www.biggerpockets.com/buy-and-hold-calcula...

$350,000 / 8 = $43,500/unit. Is that typical for apartments in that part of the Detroit metro? 

Expenses seem to be averaging about 43% of rents received. Seems a bit low, but probably self-managed. Make sure to plug in 10% for third-party management in case something happens to you and you can't manage it yourself. 

Actual received rents average $545. What are the "asking" rents? That will show the effective vacancy rate. 

What are competing rents in the area for those size units? (on Zillow and Padmapper, for example)

What is the HUD Fair Market Rent for the Detroit Metro? If you wanted Section 8 tenants, what does the local housing authority say they would pay?

Get us some answers, and maybe we can help.