Good deal for someone??

6 Replies

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.

Any feedback?

FSBO asking $249,000

Very small market and likely local buyer only.

Mike

@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 

@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. 

Medium logo1Joe Fairless, Best Real Estate Investing Advice Ever | http://www.apartmentsyndication.com | Podcast Guest on Show #227

Thank you all for the feedback.  I will keep you posted on my decision   doing more research

Charlnen

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