Multifamily Deal Doesn't Add Up...

[Matt Teegarden]

Hello BP!

I'm running numbers to get some practice and I came across a property on Crexi that just doesn't add up for me.

I'll lay out the numbers if anyone would care to chime in, maybe I'm just missing something. There is a lot of info not listed so I did my best with the calculations and assumptions:

- Multifamily Apartment - Value Add - 32 units

- Total income / year = $256,264.97

- Total Expenses / year = $234,781.81

- NOI = $21,483.16

- Average rent in area per rent roll & rentcafe = $1,200 / unit so $460,800 / year (which is different than what is shown on ProForma)

Anyway, I go to use the valuation calculator on Crexi and the first number that makes sense for a purchase price is $500,000 (super low for a 32 unit complex). When I enter $500,000 for purchase price with 30% down ($150,000) it still spits out these super low numbers at me (4.3% CAP, 1.75% ROI, $2,623.12 Annual Cash Flow).

Would anyone please help me make sense of this?

Here is the link to the listing (maybe someone will find this an awesome deal).

https://www.crexi.com/properti...

Thanks in advance!