Advice on Ft. Lauderdale Deal

[Mario J Perez]

I'd like to get opinions on this So. Fla. deal.

Location: Ft. Lauderdale
8 unit apt. complex
All 1 bedroom/1 bath
14 parking spaces
New roof in 2009
Central A/C in each unit
On site laundry (additional income)
Occupancy: 100%

Here are the numbers:
Asking price: $736,000.00
Estimated Yearly Mtg. Pmt. at 5%, 30 yrs: $36,800.00

Income:
Monthly Rental Income: $5,855.00
Laundry Income: $2,400.00
Total Monthly Income: $8,255.00
Yearly Income: $99,060.00

Expenses:
Taxes: $7,720.00
Insurance: $2,230.00
Water: $6,300.00
Electricity: $650.00
Waste: $3,200.00
Total Yearly Expenses: $20,100.00

$99,060.00 Income

- $36,800.00 Mtg. Pmt.

- $20,100.00 Expenses

=$42,160.00 NOI

Thanks,

Mario

[Jon Holdman]

Expenses are WAAAAYYYY understated. No maintenance of any sort? No property management? No vacancy, ever? No capital improvements?

$2400 a month in laundry income means each unit spends $70/week at your laundry? Or, do you mean there's a laundry business on site? That would be worse, given it turns this into a mixed use building and has environmental hazards.

5% 30 year mortgage on a apartment building? What lender is doing that?