@Mary M. Thank you for reaching out! Here’s a breakdown of the deal. It’s an 8 unit, with condo quality apartments. The building was build in 2000 and the current owner has not updated any of the units since it was built. The building is located within a mile of the main downtown area. The building is located very close to the main tourist spots including lake Geneva, lake Delavan, etc.
Deal breakdown:
Asking price- $1.2 million.
Offering $1.1 million.
The Adjacent identical 8 unit building sold last month for $1.25 million.
Income: (current, not proforma)
2021 income- $98,040 (rents are under market)
Expenses:
2021 taxes- $14,651
Insurance- $936 per year
2020 maintenance- $5,287
Annual HOA dues (garbage, landscaping, snow removal included)- $9600
Property has been managed by current owner.
Total expenses- $37,370
Operating income- 98,520
Operating expenses- 37,270
NOI= $61,150
Annual loan payment- $36000
Cash flow= $25,150.
Cap rate (at purchase) 5.6%
Plan is upgrade each unit as they become available, reduce expenses, and bring rents up to market.
