Buying a Small Apartment Complex

[Mark Basinger]

Hello: I have an opportunity to acquire a 24 Unit Apartment Complex for a price $2,500,000

Income: $21,181 /Month

Expenses: Water, trash and sewer is $1,375 / month

Electric, $300 / month Alarm, 100 / month Phone, $50 / month Taxes, $5,700 land and $15,400 improvements Wear and tear, maintenance, $650/month Insurance $500/Month

Cap Rate 8.9%

Option 2:

Acquire the adjoining lots for $2,000,000 for 2.5 Additional Acres for Development of up to 70 units.

Looks like cap rate are 8.9

Can you provide your thoughts on these two deals?

Thanks.

Mark