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Updated over 6 years ago,
Question on analyzing a deal
First time post. I'm a newby to BP and I feel like i'm learning a lot but I have a bunch a few questions. To start off, I was trying to get used to analyzing deals and looking at what brokers send when they have a multi-family building for sale. The deal was for a 19 unit property for $60,000 a unit for about 1.2 Million. How do they come up with the $60,000 a unit? Is it based on rent? SF?
Also, when they broke up all the numbers for the deal, they broke it down for what the apartments COULD rent for and not what they are ACTUALLY renting for (was about $10,000 less at the end of the year). When looking to purchase a deal, am I purchasing it for what it WILL be or what it is now?
Any guidance would be helpful,
Thanks