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Updated almost 6 years ago,

User Stats

603
Posts
130
Votes
Adam Craig
  • Investor
  • Cleveland, OH
130
Votes |
603
Posts

Looking to buy 8 unit apartment - rent roll provided now what?

Adam Craig
  • Investor
  • Cleveland, OH
Posted

Many of you have helped with questions regarding my first apartment deal. Here is one more...

  • 8 unit apartment complex - owners daughter is getting ready to sell because owner is terminal. I made her aware of my interest I have good insight into the building.
  • Apartment is all one bedrooms currently getting 400-500/month. She is already under market value - we feel with minimal cosmetic investments (5K / unit) that we can get rents in the $700 range as tenants turnover.
  • I dont have all the costs yet but I did ask for a rent roll. Looks like this thing has been very mismanaged, only in the last couple months did they fill some empty units just before listing.

Now that I have the rent roll now what? I am meeting with several of my commercial lender contacts this week to discuss options. I am not sure if she is willing to owner finance some of it but I will likely present her some scenarios.

Can you review the rent roll below and tell me how I can use this information to make an offer? I cant really calculate cap rate until I get water/sewer/trash/repairs. All I know is unless they have a very low mortgage this building must be losing money based on that rent roll.

2018
1609 January Feb March April May June July Aug Sept Oct Nov Dec
#1 Vac 375 375 375 375 375 375 375 375 0 0 0 0
#2 Frank 400 400 400 400 400 400 400 400 400 400 400 480
#3 Vacant 0 0 0 0 0 0 0 0 0 0 0 0
#4 Chris 385 385 385 385 385 385 385 385 385 385 385 430
#5 Angie 0 0 0 0 0 0 0 0 93 475 475 475
#6 Kathy  0 0 0 0 0 0 0 0 0 348.26 475 475
#7 Dave  375 375 375 375 375 375 375 375 375 375 375 425
#8 Nick  450 450 450 450 450 450 450 450 450 450 450 475
1985 1985 1985 1985 1985 1985 1985 1985 1703 2433.26 2560 2760
                                             
                                             
2019                                              
1609 January                                            
#1 McKay 116.67                                            
#2 Frank  480                                            
#3 Vacant 0                                            
#4 Chris  430                                            
#5 Angie  475                                            
#6 Kathy  475                                            
#7 Dave  0 (*Out of work Teamster. Back to work in February and will catch up.)                              
#8 Nick  475                                            
2451.67                                            

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