Hi Ian,
I work heavily w/investors, wholesellers & wholesale properties. My business partner and I also are starting up our own PM co., knowing where others have had issues from being in RE for 5+ yrs, feel confident in that!
Anyways, for 2013, if its less & I'm assuming it is, did he do a lot of updates on mechanicals, exteriors and such? Those can add up quick. Though taking away from the ROI, temporarily,pays back quick in the long run! Not having deferred maintenance, to you, as an investor buyer, is huge. You may want to look at cash on cash return too. IF the ROI has been steady for 2/3 yrs, I'd say it was probably used putting back into the properties. Look at the overall cap rate now vs what you expect. Is it feasible? Can any rents be raised, could insurance/taxes be less?
I hope this helps.
