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Updated over 4 years ago on . Most recent reply

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Audrey McAuliff
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Help analyzing an apartment deal

Audrey McAuliff
Posted

Here is the deal: 8 unit complex. Purchase price would be $325,000. Owner would finance for 6.5% 10% down. Each unit rents for $500. Only 1 unit has been vacant for 1 month in last year. 

The roof was new in 2016. Current owner has replace the flooring & paint in a couple units as the tenants have moved out over the last year. One unit has a new fridge. 

He shares the trash expense with the owner of the other apartment complex and it is $70/month. Taxes are 1600/year and insurance is 2100/year. 

Using the Bigger Pockets calculator, the CoC ROI was 36.88% and the monthly cash flow was $998/month.

5 year Annualized return was 36.7%. 

Thoughts? 

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