Looking for my first Apartment Building/Complex

[Seth Berra]

I'm looking for any advice or tips on buying my first Apartment building/complex. The deal that I am looking at right now is a 9 unit "older" all brick building in a good area. Before I tell what the property is listed for.... what would you pay for this property? Also, I will be getting a portfolio loan with 15% down 4.4% for 7yrs- 25 year amortization.

9 Units

Gross Income- $57,420

Less Vacancy 8%- $4294

= Effective Gross Income of $52,826

Less Operating Expenses

Maintenance & Repair- 7719

Management 10%- $5282

Utilities-  $4063

Insurance-  $3466

Taxes- $6000

Total Operating Expenses= $26,530

(the 50% rule just so happened to be spot on)

Net Operating Income= $26,296