Need an opinion on a deal

[Nick Gold]

Hello Everyone,

I'm reviewing a deal, 24 units with Low occupancy (50%) and i'm having trouble to estimate what I should offer. There is a low occupancy because at least 10 units need upgrades and it's poorly managed but if I fix that it's a great property, in the area the vacancy is between 5-8%.

As is the NOI is $19k and they are asking $850k but I know as soon as I fix all the issue the value is going to be much higher.

When you make an offer you are supposed to buy as per the actual number and not proforma but I don’t want to insult him.

What should I do?

Any tips on how I should proceed with this deal?

Thanks,

Nick