Apartment Building Analysis 10residential 1 commercial

[Raymond Rashid]

I have my eyes on a deal in Toronto,Ontario. But I'm not seeing the numbers work. The seller is quite firm on 1.5 million.

Gross Income is 98K with two units unrented. Fully rented the income would be about 125-135k.

Current expenses which does not include Vacancy, Maintenance or Property Management is 24K. If I include vacancy, maintenance etc, the expenses in total become just short of 40k. Leaving a current net income of 58k or a potential net income of 85k.

Do I value the property at the current rate or the potential rate? It's in an area of high demand, so I expect the units to rent quickly.