All Forum Posts by: Antwan Smith

Thanks Mike,

That is why you are the Community Guru. I always value your opinion. I am glad I have guys like you to help me understand and possible save me from making too many mistakes.

Again thanks,

Antwan

TC,

I was thinking the same thing but needed a second opinion just in case I missed something. I am going to pass on this deal but I am curious for future reference what would you offer to make the numbers work for you and how would you come to that conclusion.

Thanks,

I found a apt complex which I ran through the property analysis tool but I want check with the experts here before I decide to pass since the numbers don't seem to work. I may or may not be doing it correctly.

Here is the info from the property:

Financial Summary Proforma
Year: 2007
Scheduled Gross Income: $89,100
Vacancy: $4,455
Effective Gross Income: $84,645
Maintenance: $8,800
Taxes: $8,015
Insurance: $3,500
Other Expenses: $5,925
Total Expenses: $26,240
Net Operating Income: $58,404
Debt Service: $49,500
Pre-Tax Cash Flow: $8,904
Expenses/Unit: $800.00


Unit Mix Information
One-story units
No. Units: 3
SF: 1,036
Avg. Mo. Rent: $675


Two-story units
No. Units: 8
SF: 1,026
Avg. Mo. Rent: $675

Building Size: 11,300 SF
Lot Size: 0.67 Acres
Occupancy: 100.00%
Price: $795,000
Price/Unit: $72,272.73
Cap Rate: 7.35%
Year Built: 2002

Tell me what you think