All Forum Posts by: Harrison Aakre

@Hannah Krebs

Thanks for the detail! We are thinking about doing the same to our 71 split level in Northern Minnesota. The toughest part about the kitchen and living room is the load bearing wall.

What did you guys do to take care of that in a cost effective way?

@Taylor L.

Yes an additional tax against the property for the town updating the street the property is located on. They have a special assessment of 50k that is set to be paid off within 5 years. They have not disclosed this but I found it by searching through tax information.

@Taylor L.

Thanks!

Looking at their proforma, they have their cap rate and list price based on the market rent and not their current rent.

When looking at their records, there is also a special assessment for almost 50k.

I have two question:

1. Would I calculate a new purchase price based off their cap rate against the NOI I have calculated based on their current rent roll?

2. How does a special assessment figure into the purchase price of an apartment complex?

 We are looking at smaller 6-18 unit apartments.  Thank you for the help!

 Thank you!  That makes sense.

Me and a partner are looking to get into apartments, but there is something I’ve been struggling with understanding.

I understand that all of the money is made in the purchase, but often with apartments we would be working with savvy investors who want to make the most off their asset.

How do you get a good deal while still buying from smart investors?