Deal analysis

[Jonathan G.]

So here is a deal I’m putting together. A 36 units, 40 years old, performing C building located in a nice B area in Fort Worth, TX. The complex comprised of 4 buildings. Was wondering how much will you offer for this complex:

Last 2 years info. indicates as follows:

Total Gross actual rent income $244k (reflecting 12%-13% vacancy). I'll take over with 95% occupancy though.

OPEX (All utilities paid by owner):
Tax - 24k
Insurance - $3k
Water - $29k
PG&E - $45k
trash - $6k
Maintenance person - $20k
Maintenance Supplies - $13k
Management - $19k

NOI - $78k

Will start by assuming existing note, 18 years at 7% 5 yr adjustable until I refinance into 25 years at 5% 5 yr adjustable with WF.

Debt Service - $54k

Operating expenses run at the 68% (nice upside here), actual Cap rate 9.32%. Capital Improvements last 3 years have been around $15-20k/year.

Thanks,