Potential 72 Unit Opportunity

[John Chan]

Please advise on this property:

72 unit apartment building in a cul-de-sac, built in 1978, all 1 and 2 bedroom units. 1 Bedrooms go for $375 and 2 bd for $425.

Now they're asking $1,000,050 in a short sale.
Their current occupancy is 15 out of 72 units. That's right.

The building was brought with low occupany and bad management for $1.3 million. Two years later, there was a land contract put on it for $1.575 million (which happens to be the appraisal amount in 2006). That person also happens to be the seller's agent right now (read that in the appraisal report). The seller's agent told me the bank put a receivership in place and they aren't doing much as far as renting out the place.

There is a bus line nearby, and a few stores within walking distance. The units seem to be in good condition.

The apartment is losing money right now from what I am reading off the annual reports.

What other factors would you also look at before considering this type of deal?