Updated over 11 years ago on . Most recent reply
small apartment complex
I am looking to buy my first property. I was really not looking for anything this big to start with, but I have come upon 2 eight unit complexes. The first is really nice, pretty much turn key. The rents average $475 a month, there is even a waiting list. The problem is that the asking price is $290,000. The second complex has had two units completely burned, and has a $42,000 estimate to repair those 2. The other 6 are in good condition, and rent for about $450. The rental history isn't as strong as the first, but the cost is only $135,000. I think that the units in complex 1 are undervalued, the owner is old and hasn't increased the rents. Do either one of these even sound like I should pursue from a numbers standpoint?