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Updated almost 8 years ago,
Newbie - Portfolio Deal
Hi all,
I am new to the world on RE investing and trying to learn more everyday from BP. I am currently looking for deals, primarily small apartment complexes, to build up some passive income.
I came across a portfolio deal for 23 units. This consists of an 11 unit building and 6 duplex scatter around a 3-4 block radius. The asking price is $1.6MM. Here are a few more points to highlight:
- 8.18 CAP RATE
- NOI AROUND $133,000
- GRM = 7.3
- Pretax Cash Flow = $58,886
- Cash-on-Cash Return = 14.48 % assuming 25% down payment
- All units are currently occupied
All these figures were posted on the prospectus and provided to me by the broker. From the surface does this look like a deal to look into & what other questions/info should I be asking the broker for?
Thank you in advanced for your help!