@Ben Leybovich The owners of the building are selling all their assets to retire. This is one the last of about 6 rather large properties that they have been selling over the past few years. What will start happening is seeing more of the heating units going down which has been happening over the past few years looking into their maintenance records. Given our location no AC is needed in the building unless tenants want to put up their own window units which then is completely covered by their own expense.
I agree that $43,750 per door is too much. For my building I paid $31,250 per door which will end up being $37,000 per door after renovations. As I mentioned though, not nearly the curb appeal or amenities provided at this location. I wouldn't go in past $41,000 per door under my current assessment of the finances. These would need a much closer look before finalizing an offer and I imagine the $40k number would be more accurate.
And yes, there are items that would need to be addressed and reviewed. As a part of my property calculator I asses the taxes based on the appraised value if the taxes are currently lower.
Another quality point to the building is its design requires very little maintenance relative to other similar properties. Lawn care is minimal and no common facilities for laundry etc. Each unit provides their own washer and dryer if they please. Trash pickup is very inexpensive in our area.
Under my current understanding of options raising capital through self directed IRA's or private financing at 8% for 15% of the purchase price would allow me to make enough money each month for the work to make sense. The other option that makes sense is setting up an equity partner who would front the money which I could setup an 8% preferred dividend or 50% of the operating income, whichever is higher(50% would be higher unless major maintenance issues).
