Trying to understand Commercial investing

[Kavon Hunter]

Hello everyone, I am currently in the process of learning about commercial investing (apartments) and I wanted to get some feedback regarding one the deals that has been brought to me to try and understand if this makes sense to buy. 

Here are some of the numbers:

Asking: $650,000

Annual expenses: $61,376

Annual rents:  $157,500

NOI: $96,124

Any advice would be greatly appreciated. Thank you. 

[Brad Shepherd]

National studies put the expense ratio of multi-family properties at 45%, meaning, for every $1 you pull in, 45 cents goes to cover expenses, not including debt service. Your numbers are at 39%, so I'd say you're in the ballpark.

But your numbers put the cap rate at over 14%, which is incredibly high. So that makes me think this is a very deep value play with an expensive rehab, low occupancy, both, or just a screaming deal. 

But as Andrew said, what you've shared doesn't give us much to go on. What are the value play options? How many doors is it? What class? 

That aside, just from the numbers you shared and a 14% cap rate, that'd get me excited.