First potential deal
Hi BP community,
I need your help with my first potential deal.
How much should I offer to purchase the following two properties? Since both properties are exactly identical in term of number of units, parking spaces, gross incomes, expenses and so on, I am combining the specs so to provide a less complicated picture.
Asking price: $700,000.00
Total number of units: 8 all two beds one bath and all rented out to long term tenants (Tenants pay water and electric)
Cap rate: 8%
Yearly gross income: $84,000.00
Total expenses: $22,202.00 (Utility: $1,920.00; Lawn: $1,680.00; Pest control: $1,200.00; Insurance: $7,000.00; Taxes: $10,402.00)
NOI: Yearly gross income ($84,000.00) – Total expense ($22,202.00) = $61,798.00
Please advice.
Vinet Fils-Aime