Apartment Buyers: Is this a 50% - 2% deal?

[Stacy Dieckman]

Apartment buyers,

I have a client wanting to sell an apartment complex in Erie, PA. Using the 50% - 2% rule, please give me feedback on this deal before I advertise it here.

34 Unit Apartment
100% rented - typically very high occupancy
Rents $515 - Market will bear $550
There is almost an acre to develop - maybe self storage?
Asking Price - $875,000

Thanks for your input, it will help me counsel the seller.

Stacy