Deal or No Deal-52 Unit Apartment Complex-South East

[Ira Sullivan]

So my 12 week goal is to purchase an apartment building with 34 or more units. I’ve come across the following deal. This deal is in Alabama. I’m about 2 hours away. I plan to hire an on-site manager and maintenance man. Please let me know what you think.

The 52 Units consist of 12 Buildings. This is a Class C Property

Asking Price: 1,550,000

Estimated Rehab: 650,000

Average Cap Rate: 8%

16 of the 52 units are currently occupied bringing in over $11,000 a month.

This would be a major rehab. New roofs, flooring, paint, exterior upgrades—Parking.

Cooling-Window AC

Heat-Gas Furnace

City Water and Sewer

Owners Pro Forma:

ARV: 2,860,000

Gross Income: $433,000

Annual Expenses: $99,000

Expenses: Property Taxes, Gas Bill, Insurance, Maintenance Reserves, Water and Sewer, Property Management