[Calc Review] Help me analyze this deal

[Aaron Nelson]

Would you buy this deal? This is an 8 unit apartment. Based on several comparable apartment buildings, 2/1 units are leasing for $550-$650. My plan would be to increase the rents to this level over the next year, representing at minimum an increased monthly gross of $4400 ($600 more/month than now). All of these 2/1 units are currently leased at $475. These apartments have a history of near 100% occupancy. Also, you'll notice a fairly low property management fee in the attachment. This is because I run a property management office and this is an estimate of my cost for my office to oversee the property.

https://www.biggerpockets.com/...

*This link comes directly from our calculators, based on information input by the member who posted.

[Nick Seginowich]

If it provides a solid return initially with the potential for increased rents over the next year then it sounds like a great deal to me. 12% is a good base return but it all comes down to if this deal would get you closer to your goals. I know you would like to get into some multifamily deals so it seems to me like you should go for it. Possible things to consider would be the type of tenants the property attracts and the current tenancy lease agreements. Also consider if you could get a better return for the $70,000 elsewhere? But I have heard there's a huge demand for these low income type rentals in San Angelo where 100% occupancy is pretty much the norm. Im guessing you already know if it's a good deal for you or not, so I would say listen to yourself, good luck!