44 units in Ohio

[Owen Hogarth]

This is an preforeclosure in sale coming up in about 3 weeks. the seller is going to lose it and will sell for 495,000.

its 44 units
need about 10k for two boilers and some paint

gross monthly potential rents are 18,315.00
average rents are 415.00
for the last year the average expenses is 6,500 dollars

[Michael Rossi]

Owen,

On paper, this is a GREAT deal! Here's how the numbers would work, everything else being normal:

Gross rents: $18,300
Operating Expenses: $9,150
NOI: $9,150

Debt ($495K, 30 yr, 7%): $3,293

Cash flow: $5,857 or $133 per unit per month

So, the fact that the owner is losing the property should be raising red flags! I live in Ohio and I would buy a property with these numbers IF IT WERE IN MY COMMUNITY! Having said that, there are ghettos in Ohio where this would be $495,000 more than I would pay for it!

So, the big question is where is this located? Why is the owner losing it? Is it in a war zone? Is the building falling down due to deferred maintenance? Is this in the rust belt where all the jobs have gone elsewhere? The numbers look good, but can you deliver the numbers?

Mike