8 Unit, Already look at

[Alexander Schwartz]

Hey all. So here's the run down.

Two buildings, same building essentially except one side has a backyard to it and 3 more units. The 11 unit across the street sold for 510k.

I'm looking at the 8 unit. Listed for 410k. Expenses for the year - 14k. I don't think this includes management fee as the owner manages. Income is 50k, little vacancy as it rents quick and not a ton of turnaround and is in a good ruralish area.

Building is either from 1991 or 1988. Some furnaces, appliances, and AC's are on the way out so I'd have to keep an eye on those. There's also a small spot on the back with sitting water against the building that my broker/investor i was with said he knew the fix (he's extremely smart and didn't make it a big deal so i trust it's not a deal breaker, and theres no basement) Outside is in pretty good condition. Not ghetto or anything. Pretty standard apartment inside and out.

Rent in the area according to rentometer for single beds is $640 so it's on the low side and with the old original appliances and cabinets and stuff, has upside potential.

I was thinking of offering 380k to start and subject to financing, with inspection contingency, request a schedule e (he showed us numbers from his accounting software already but to be safe of course,) and estoppel certifs.

Income 52k

Exp 14k

NOI 58k~

Rents- 525-575

My broker said he'd go 390k max but he said he thinks it would be a good buy to hold for cashflow and rehab units for higher rent. 

Thoughts? I should be able to answer any questions.