48 unit Apartment Building for $430K

[Hal Cranmer]

I have been a residential RE investor for about 7 years now and am looking to move up to the apartment building lifestyle. I'm just learning about apartments, but I found this deal on CL and would really like to hear some feedback on it.

On the surface this sounds great. With 20% down, the owner will provide financing and he has put $100K into the building in the last year. The pictures make it look like it needs little to no fix up. He said what it really needs is good management. But it is in a small town bordering 3 northern Midwest states and in the middle of nowhere. The town sounds like a small ag town and the population as of 2011 was 1,410 according to Google.

I've been in touch with the owner and he thinks even with a 20% vacancy rate the apartments will cash flow like crazy. He is going to send me some numbers, but I would love to hear from other apartment investors out there how to analyze this and does it have any possibilities?

Thanks.