REO Section 8 Apartment Complex

[Brandon H.]

Need some input on the following deal:

Units: 1,2, & 3 bdrm townhouses (majority 2/3 bdrm)
Section 8 (renting under market price)
Occupancy: 80%
Price: $12,500 per door
Cap Rate: >10%

This is the first apartment complex I have looked at investing into. The complex is in an economically depressed area with higher vacancy than the national average. I also assume, based on year built, that there may be some deferred maintenance needed. What are your thoughts on this deal, what should I watch out for, what questions should I ask, and what is the max I should pay?