Multifamily Deal Analysis - Would You Buy?

[Ryan Pettit]

I’m looking at this deal: would you buy it?

16 Unit Class C Apartment Complex

-Purchase Price around $600k in Texas

-Located in a decent city but not the best area of town

-Rents are below market by $100/unit but may need slight flooring upgrades to get there

-All units full

-no known deferred maintenance

-NOI if I self-manage = $70,000

Cap Rate around 12%...could be 15% if I get the raised rents over time.

Any thoughts? And is it practical to try and manage this myself? I have other rental houses so I am used to dealing with tenants.

Thanks!