multifamily 6 units

[Essam Elkady]

Hi Guys I always hear about cap rates of 10 percent or more in multifamily I really do not know what you guys talk about Iam from springfield missouri here is the best deal we have
Asking price 359000 may be will sell for 330000$
6 units 4 of them 2 bed 2 bath and 2 units 1 bed 1 bath
monthly total gross rent 2900$ It is very easy to rent ,real nice area class A ,the building is B though built in 1988 but brick and nice building

Expenses monthly 280$ taxes,200$ insurance,250$ utilities just water and sewer maintenance I would say 300 $.management another 300$,CAPEX 250$,vacancy 200$
Cap rate around 4 -5 percent so what are the numbers I hear here at BB ,that is the best building I have seen so far

[Arlan Potter]

it appears to me the biggest problem with this complex is that the rents are amazingly low. Your gross rents should be at least $4500.00 per month. Why so low. The current gross rent is less than 1%/month