Moving into apartment buildings? What's the avg price per door?

[Mark Williams]

I have owned a couple single family rentals, and I am looking to make the move into smaller apartment buildings.

I have found a 24 unit building, and I am wondering what the average price per door I should be offering.

2 bed / 1 bath apartments go for about $650/MO. here in Michigan.

[Patrice Penda]

@Mark Williams
The valuation of commercial asset (which your 24 unit building is) is driven by the NOI of the asset, the building class, the cap rate for that asset class in the area where the building is located and th
it is very different from the purchase and sale of residential properties for which the value is determined by the price other people paid for similar properties.

it is important to look at the P&L statement for the building you are looking to purchase and verify that it accounts for the expenses and income to work out the true NOI.

The NOI divided by the cap rate and divided by the number of units would give you the price you should expect to pay.

That price per unit will vary depending on the class of asset it is.
Class A commands the highest price per unit and the lowest cap rate
Class D commands the lowest price per unit and the highest cap rate

Not the precise answer you were expecting but hope it helps.