When it comes to wanting to have the same expenses as an owner that you do as a renter, I’m not sure you’re grasping how the analysis differs from renters and owners…big difference.

Yeah I've listen to #70 a couple times and can't grasp how to make a subject to deal to work.  

But if your strategy changes this is an important distinction to grasp.3.

I'm also considering a partnership with them and would like a better grasp on how to approach them.

Just trying to get a grasp, because I believe I calculated $300 for cap ex when I revised my numbers for this property.

Seems like you have a great grasp of what you are wanting to accomplish it and how you can accomplish it.

Without a solid grasp on what expenses and other costs for each property, how do you come up with ballpark measure of past sales to understand neighborhood opportunities better?

with about seven employees but he doesn't seem to have a good grasp of accounting requirements for keeping track of all expenses, income etc to be able to do a P&L mid-year if the bank wants that.

It's a fantastic niche, but I believe there are some that just aren't able to grasp the actuality of the game.

73% operating expenses is off the charts unless your friend is paying himself out a big salary and retirement etc.Age of the building and location will determine what CAP rate a buyer will pay among many other factors.If your friend owner finances a portion they may be able to extract a higher price.If they want a straight sale from a cash buyer the price will be lower.The scary part is your friend owns an 86 unit but does not know how to go about estimating value.I expect this with investors owning 4 to 10 units but not usually complexes that big.To purchase ones that big usually the owner has a very good grasp of cost and resale analysis.Investor buyers will look at value add with the property as well the current CAP rate going in and projected CAP rate later on.For an older building a 10% CAP is a good starting point to draw interest in many markets.That would put your friend at a sales price of 1,730,000 before resale costs.Really needs a commercial broker in the area that specializes in these types of property.