Is this apartment building a good deal? (Very old building)
Newbie here. A 7 unit apartment building that is about 125 years old, brick, Windows AC, rooms partially renovated, fully occupied.
The seller claims a NOI of 63k, which is based on 6% management fee, $2000 repair and maintenance. The rent is close to the market rate. Asking 850k. CAP rate 7.5%.
A commercial lender is willing to do 4.75% 5-30 years at 80%.
Is this a good deal, is the age of building a big factor?
Most Popular Reply
@Greg Soon I would want to see a gross income of at least 130K/year to be interested. Old properties have their quirks and they know when a new owner is taking over. Be sure and have money available for unforseens. Other than that if the building has had decent maintenance age is less of a factor. For sure have it inspected by a pro. All the best!