12 unit apartment, need advice!

[Dennis Haber]

Previous post.

Looking at a 12 unit apartment, owner is asking 288k.
There are 3 buildings, one of the 3 buildings is for laundry, hot water
heater and storage. Court yard layout with units facing inward towards
court yard. All single story.. Apartment has a stable rental history for
2008 to present. All rents are 330 per unit (1 bedroom) one is 530.
Class C property.

Offer is at 240,000
I will put 20% down

Rents 2008 actual 48268.87
Rents 2009 actual 46208.68
Rents 2010 thru april 16015.59

2009
Other Income 2090.45
UTILITIES 12,622.26
TAXES AND INSURANCE 5,004.58
Debt Service 20yr 6.25
3yr ARM 1461.00
Maintenance 5 % ?
actual $1860 make ready and $1251 parts and supplies
Management 5 % ?
I will manage.. because its close to me <15 miles

Any thoughts on with new information if this is a deal..
Some room for upside exists, in my opinion.
I am capable of doing most of the maintenance

Thanks
Dennis

[Rich Weese]

Let me preface this with "I may just be in a bad mood!"
I've been negative in previous review and I'm going to be the same here. Reasons
1.15 miles is a long way to manage from
2. All 1br=higher turnover
3. higher turnover increases exps.
4 3 yr arm is what has caused the mess everyone is in now!
5. high utilities. Who pays?
6. The $530 is likely salted.
7. Is that a 20 yr Amort?
8. single level was bad use of land.
9. You left out MANY addtl. expenses.
10.Hot water for laundry or apts.?

I think that is a start for you to consider. Are you experienced enuff to do mgmt., maint., AND dtermine there is an upside?

As I said, maybe I'm just in a bad mood. I need to go watch my 2 and one half minute thread again. It'll make me smile again. Rich