Analyzing a multifamily property in Kent, WA

[Jeff Dzado]

Hi everyone. I found an MLS-listed 12-plex in Kent, WA (listing says 12 bedrooms which suggests 6 units, but describes 2 buildings with 6 units each). The units are 2 bed, 1 bath. It is listed for $2.3M. Monthly rental income is listed as $11,860. This means $988/unit average. If the NOI numbers are to be believed ($51k/year), it is selling at a cap rate of 2.2.

I quickly looked at rentometer.com, and it suggests that average rents for a 2 bedroom unit is $1600+/month.

Is this a really good potential opportunity (especially in the Seattle area) to fix it up a bit (if needed), raise rents, season it for a while, and sell? An extra >$600/month/unit in rents seems a bit crazy to me as this might be closer to $150k/year NOI (again, need to look into the NOI a bit closer). Maybe it really is just that poorly managed?