Found a 6 unit apartment (2-2BR & 4-1BR) in southeast Montana, closest town within 40 miles has in 2012, a population @ 2333 & median income in 2011 of $76000.
Average annual rent collected in last 4 years = $30597/yr, Taxes & Insurance $2620/yr, $ 8065 utilities/yr
I have no money therefore I can't do this deal, I would need 100% financing. Thus prob now a good deal for me, also I am a newbie and don't really know what I am doing.
Owner will replace all windows with vinyl and paint exterior and hallways. Carpets need replaced soon. We can manage ourselves so don't need pm.
A price would be helpful.
FSBO asking $249,000
Very small market and likely local buyer only.
@Charlene Ball with the market being as small as it seems, the seller has a limited audience of buyers. If he really needs to sell, you will likely be in the drivers seat on price and terms. Have you approached the seller about owner financing?
@Charlene Ball unless there's a stock exchange in Montana I don't know about I think their 6 cap offer price is way off. I calculated that using the 50% expenses rule. I'd pass unless you get get owner financing and a more realistic sales price. Will be a good exercise for you though if you get more concrete #s from them.
Thank you all for the feedback. I will keep you posted on my decision doing more research
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