$1.9M - $147K NOI - 7.50% Cap Rate - 64 Units - D Location & Tent

[Mehdi S.]

Hello, 

What are your thoughts on the following structure below. I've also provided their Trailing 12 for your viewing pleasure as well. Based on absolute $0 negotiations and with 25% Down payment, the loan would be $1,488,750. This loan financed for 30 years at 4.25% would be $87,888/Year. Subtracting the NOI of $147,000 - $87,888 would leave cash flow of $59,112/Year or $4,926/Month.

Asking Price: $1,985,000 

NOI: $147,000 or 7.50% Cap Rate

Units: 64

Location: D or E

Tenant Type: D or E 

Thanks, 

[Jay Hinrichs]

if your talking D or worse class tenants no cap rate will suffice and certianly not 7.5%