12 units - how are the numbers?

[Adam Philpot]

Evening BP’ers, I’m running the numbers on a potential 12 unit (3 buildings) 2bd/1ba in Huntsville for 510k. I’m pretty new so would like to make sure I get the numbers right. I want to roughly factor in a 60% margin after factoring in expenses so even if expenses are under I’ll pull out the additional for any potential cap ex down the road. They said they’d provide a full year rent roll and financials breakdown after contract is accepted but the gave me June. What do you think of these numbers? Month of June Income - $6,018 Expenses -$695 Prop management - $602 Balance -$4,722

[Sam B.]

2 bed units for $500? Sounds like a great neighborhood. $6,000 in revenues with only $1,300 in expenses? No way. And $500k at that.

Not even close.