35 unit apartment value

[Aaron Arnold]

I’m looking at a 35 unit apartment building North of Kansas City. All units are studios and should each rent for around $350. All utilities are billed back to the tenants. The building is supposedly at 90% occupancy. Appears to have little if any deferred maintenance. I’m not sure it’s truly turnkey but definitely not a mess either. I’ve run some numbers on what I think it’s worth but I’m hoping someone with some more experience can give me a better ball park. Just let me know what additional information you need. Thanks!

[Allyssa McCleery]

You are missing some pieces of information. What is the cap rate for this area? $350 seems pretty low, what type of neighborhood is this? Being that all the units are studios you will likely have a significantly higher turnover rate than if the units were 1 bedrooms or 2 bedrooms so that is important to keep in mind in your analysis. If it appears to have little deferred maintenance, what specifically does it need?