20 Units - First Large(r) Apartment

[Alex DeNigris]

I have been investing in the multi-family (2-3 units), small apartments (5-6 units), and commercial properties over the past 10 years.  I believe I have a good handle on wise investment choices from what I am used to, but I have little to no experience on larger apartment buildings.  I was recently offered privately the following "B" rated apartment building in a "C" neighborhood.  The buildings are right on the water in a Northern Ohio city which is relatively known as a "C" area, but the location is ideal.  The area is booming with construction and city improvements.  There is a 10 unit ( 1b 1 ba) an 8 unit (2 b 2 ba) and a duplex.  They are all located next door to each other.

Rents are very cheap compared to comparable comps in the area.  I only want to base this deal on current.  Anything above and beyond, that may come from raised rents, I would like to look at as a bonus.  With a property investment I am not familiar with, I would like to stay on the "conservative" side.  Units and properties are in great shape.

PP: $790k

Income: $128k

Expenses (utilities, RE tax, gen. maint.): $63.6k/year

Analysis: Alabama Review

Thanks in advance!!

[Steve R Chamberlain]

@Alex DeNigris Just looking at the numbers are you only borrowing $118k