Would this apartment 6 unit complex be a good deal

Question

Wondering if this is a good deal if so need some help obtaining  this propriety

century point ln complex

$549,000

6 Units | Multifamily | Get Financing

Multifamily Property For Sale

Price:

$549,000

No. Units:

Building Size:

6

4,800 SF

Price/Unit:

$91,500

Property Type:

Multifamily

Property Sub-type:

Garden/Low-Rise

Property Use Type:

Investment

Commission Split:

2.5%

Cap Rate:

7.87%

Gross Rent Multiplier:

13.37

Occupancy:

100%

No. Stories:

3

Year Built:

1985

APN / Parcel ID:

0222110053

Parking Ratio:

3 / 1,000 SF

Listing ID

19190790

Last Updated

22 days ago

Highlights

!!  rental income $73260 plus $2000 laundry total income $75260  									!!  re taxes $17818 / insurance $1522 / water $ 3987  									!!  heating gas $3500 / electric $272 / association $4500 / permit $500  									!!  gross expenses are $32099  									!!  $75260-32099 =$43161

• !!  rental income $73260 plus $2000 laundry total income $75260
• !!  re taxes $17818 / insurance $1522 / water $ 3987
• !!  heating gas $3500 / electric $272 / association $4500 / permit $500
• !!  gross expenses are $32099
• !!  $75260-32099 =$43161

Description

Attention investors the opportunity knocks once at your door, this building
don’t need to do anything, it has a newer roof, new windows, all kitchens and bathrooms upgraded, with ceramic tile, hardwood floors, and carpet; interior refinish include newer appliances. All units have fire place
for the winter romance. you don’t need to do anything just turn the key'
collect rents and make money

Location Location Location this is one of the best location of Glendale heights, and close to everything, close to groceries stores, Stratford,
and express ways.
24 hours notice require and we need a pre-approval letter for your buyer

Financial Summary

Attention investors the opportunity knocks once at your door, this building
don’t need to do anything, it has a newer roof, new windows, all kitchens and bathrooms upgraded, with ceramic tile, hardwood floors, and carpet; interior refinish include newer appliances. All units have fire place
for the winter romance. you don’t need to do anything just turn the key'
collect rents and make money

Location Location Location this is one of the best location of Glendale heights, and close to everything, close to groceries stores, Stratford,
and express ways.
24 hours notice require and we need a pre-approval letter for your buyer

Financial Summary

2014

$75,260

$32,099

$43,161

Lance Wakefield · Answer

Looks like you just copied and pasted numbers from loopnet or something. I personally think it is impossible to know if this is a good deal or not with out running your own numbers. As was stated above there is your financing, you also need to factor in your property management costs and assume higher taxes because once a property sells usually property value and therefore tax will be reassessed. After running your own numbers it would be great to post those here and compare for a learning experience. Doesn't matter if your going to buy the deal just put them up so we can all practice analyzing.

THANKS

Vincent Crane · Answer

There's definitely other expenses not accounted for, vacancy, monthly repairs, capex, property management, and that price per unit is pretty expensive. I'd be sure those rental income numbers are correct and not understated

George Rodriguez · Answer

thank you for all your advice, I'm still a new at this, so what would you look for? And what cap rate

Karl C. · Answer

You need to look after the financing option. Since, not knowing about the location and the numbers are not alluring. so, I will move on.

John Cohen · Answer

@George Rodriguez there are some other expenses you want to account for (turnover, property management, etc). Also have you looked into financing options? It's a blanket statement to see if the deal is good, the real question does it for you criteria? Without knowing much about location, in place 8 cap and not accounting for some other expenses i would pass.

Bryan C. · Answer

I agree with @Brent Coombs...numbers aren't enticing with vacancy, cap ex, repairs, prop. management factored in.

Brent Coombs · Answer

Less than 8% return without allowing for future Vacancies or Cap Ex?

No thanks!...