Help Evaluate 24 Unit Opp... $2,000,000

[Shannon Trivett]

24 1 & 2 bedroom Units

Newer construction (2001-2008)

Permits for 8 more units.

On site septic

Good stable occupancy

Good access to Scranton PA and the Pocono region

Additional 16 acre lot included. suitable for SFR

Current rent collected $15,500/mo. or $186,000/year

(1 vacant unit and 1 rented to family below market value)

Selling is asking just over $2M

I'd be more comfortable in the $1,000,000 to $1.3 range but I'd like to hear other opinions too...

[Jon Holdman]

Asking price of $2 million vs. rents of $15,500 per month means there's no chance this will be cash flow positive.  With a 20 year amortization, 6% loan with 25% down this looks to me like its $2800 a month in the hole.  Perhaps there's an opportunity for a condo conversion or appreciation, but if you're looking for cash flow this is a long way from it.