All Forum Posts by: Bobby Gill

Is anyone familiar with Waukegan, IL market?

I have an off market 9 unit apartment complex that was presented to me. I reside in California and not familiar with Waukegan, IL.

@Adam Rose

Thank you.

The math has to work to purchase as is. I added 6% vacancy, 10% (maintenance and CapX) with the lower rents coming in the value drops significantly. There is deferred maintenance as well.

He is asking 520K, which drops to $163K with the current rent and expenses. NOI drops a lot by adding vacancy and maintenance to the expenses and using 7 of the 9 rents coming in.

There is an off market 9 unit apartment building for sale. 2 of the 9 have not been paying their rents for the past 6-7 months. Realestate agent is using rents of all 9 units to come up with valuation of the property. This doesn’t seem correct. Would you only factor in the tenants paying rent to calculate property value? Or use all 9 rents since he may be compensated by the state for lost rents.

Apartment Building valuation

I’m looking at a 9 unit building where 2 of the tenants have not been paying their rent for months. The seller is using rents of all 9 units for property valuation. This does not seem right. Would you analyze the property value based on the 7 tenants paying rent or all 9?

@Nathan G.

Would like to connect and see if you could help. Looking to invest.

@Chris James Hariski

A lot of high and mid rise units. No single family homes below 400K

Looking to invest in Ontario Canada. Any recommendations on towns/cities that have rental investment properties that cash flow?

@Joe Villeneuve

Great example. Thanks for sharing your numbers. Here to learn a bunch!

What do you do to sift through so many potential properties for sale?

Let’s make a list of rule of thumb calculation post. Also, Correct me if I’m wrong.

70% rule: ARVx70%-Repair cost= Purchase Price

1% rule: 1% of Purchase = monthly rent est.

50% rule: 50% of rent goes toward expenses. Not including debt services/mortgage payment

Please add to post with other rules of thumb for investing...

@Steve Felt

Can you connect me to that lender?