All Forum Posts by: Ra B.

Hello Friends,

Looking to purchase a portfolio of 4 apartments in St. Cloud. All are low-income families but cap rate is 7.50% and cash-on-cash is 10%. 

It is 40 year old property. The original seller bought it in foreclosure 2 years ago. When I asked him about taxes, he says it is lumped with rest of his portfolio.

How do I verify his income and expenses? Is buying in St. Cloud with low-income low credit tenant good idea? I live in Chicago so a property management company will manage (I have identified the management company). 

-Rab

The property is really well maintained and the tenants are good quality. 

Hey All BP Forum People,

Happy New Year! 

I have been listening to the podcasts and educating myself. Now time to put all that into practice. 

I have located a commercial office building in a Minneapolis suburb. Asking price is $4.5M at $186/sq ft. Nets $307K (NNN lease) in rent. By using the Property Cashflow Analyzer, I get only 6.45% CAP rate and 7% Cash on Cash. My criteria is 16% cash-on-cash and 9% cap for such investment. So thinking about offering $3.4 M.

Is this a good deal? What are the risks for such building. Its a 30 year old building with 90% occupancy (around 10 commercial tenants like dentist, software companies etc.) with leases ranging from 2019-2023. 

Thoughts?

Rabi