Updated about 10 years ago on . Most recent reply
Should I buy this...
Current Asking Price $213,500 4 unit apartment building in nice area built in 1956 (no washer and dryer in each unit), 868 SF per unit, Each 2 bed 1 bath (Similar market rents $650-$1100 depending on quality)
My Estimates
Current Rent $615/ unit - $29520/year
Vacancy @5% $1476/year
Repairs & Maintenance $4800/year
Utilities $3600/year
Taxes $4032/year
Insurance $1440/year
Replacement Reserve $1920/year
NOI = $18408
@ cap rate of 8% property value is $153,150
but if i get the rents to $750 a unit that brings property value to $230,000 and cash flowing $4900 per year
Should I buy for $213,500...Asking Price was $250,000 and they won't come down another penny
appreciate the advice
Most Popular Reply
No. You shouldn't. You know that; you just needed to hear it from a few of us to be sure.