First 8-Unit Analysis

[Stryker Brown]

I have been mostly focused on analyzing MHP's in the recent months but took a flyer and called about an 8-unit apartment building today. Turns out the owner was open to selling and threw out a number that didn't sound to bad. I'm not as familiar with the costs associated with owning and managing an apartment building so I would appreciate any advice in coming up with an accurate NOI.

Asking Price: $500,000

Units: 8 (2 bed/1.5 bath in a really good area of a mid sized town)

Rent Rates: $800/unit

I have not been inside any units so I dont know what state is it in but the outside is brick and looks good. Parking is adequate. Rental demand is high in this market but I'm not 100% sure on what they could be raised to or if they could be.

I ran an analysis that yielded roughly $1,800 in net cash flow each month and 20% COC return which obviously sound good but I'm sure there are things i'm not accounting for correctly.

Any advice would be appreciated.