24 unit: Deal or No Deal?

[Pete Harper]

I just finished running the numbers on a 24 unit complex. Property has been on the market for over 200 days.

Asking Price: $888,000

Gross income: $114,692

Tax: $9917

Insurance: $7000

Utilities: $19,324

NOI: ($15,000)

Occupancy: 87.5%

Cap Rate: (1.6%)

I don’t see a big upside in income with 87.5% occupancy. Still losing money at 100%

Utilities are paid by owner. Potential to do RUBS at $70/unit/month.

Other maintenance costs seem high as well. I’ve asked to see 2017 numbers.

What are your thoughts?