Apartment Analysis Help!
In the midst of looking for my second SF Rental, a possible special deal fell into my lap, but I'm not sure I know how to analyze it correctly. My girlfriend's mother's friend is retiring and getting ready to put their apartment complexes up on the market.
They have 3 4-unit buildings, 1 of them is on another street from the other 2.
They are asking 200k per building (50k per door).
Here are some figures from the owner:
All units are 1-bedroom about 700sqft each
Monthly Average Rent: 525
Annual Property taxes: 7000
Annual Insurance: 1500
No property management (owners do all the work, former construction guy)
Owner didn't go into operating cost detail, but stated "WHEN" they had a mortgage (assuming they no longer do), but BEFORE maintenance/vacancy they were at 15k income.
I plan to finance with conventional if I can even do that on a complex building (no idea how a lender views this type of loan).
I'm coming up with 1542.97 for the PITI...and I used 5k in maintenance/vacany planned cost.
Is this a good deal? What would be a good cash flow per door for an apartment complex, a small one like this?
I like to get 300/ Single Family Home...is it comparable?