Updated over 5 years ago on . Most recent reply
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311 7th St S - Herbshire Apartments
48 Unit Apartment Building Offered at $3,224,327 at a 7% Cap Rate in Waite Park, MN
Found on Loopnet.
https://www.loopnet.com/Listing/311-7th-St-S-Waite-Park-MN/19090256/
Looking at the proforma, Market rents= $384,961.00 (looks like they're based on market rents rather than their current rent roll maybe?)
List price is $3,224,327
2% /1% rule- $384,961.00/$3,224,327= 0.119= 11.9%? Why do i feel like this is wrong? or am i using the wrong numbers?
50% rule- 384,961/2= $192480.5 projected expenses (not including loan)
Lets say 20% down so a loan of 2579461.6 w/ interest rate of 3.92 for 30 years= monthly payment of 12,196
(12196*12)+192480.5= 338832.5 (total annual Expenses including Loan)
Projected Rent-Projected total expenses= annual cashflow/12= Monthly Cashflow
$384,961-$338832.5= $46128.5/12= $3844.04/month.
Let me know your thoughts, comments, suggestions, anything! I'd love to hear some feedback!