How to value a 30-unit

[Paul Sweetman]

I've been looking into a 30-unit complex. My present method of cost analysis says i should buy it for $500k, but when i compare it to other deals I've seen being made, it shows I should buy it for $750k. What factors should i look into when putting together my purchase price (i.e., cash flow, equity, price per door, etc.)? Here's my current analysis. Thanks in advance for any insights or help!

[Matthew Rogers]

I understand the thinking of working the numbers backwards to come up with a purchase price but it may be unrealistic in your market.

You may want to spend a day driving 20 apartment buildings in your area and run the numbers based on listing price for each one. This will give you a lot better idea of what units are selling for and what kind of inventory is out there.

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