Investor · Columbia, MO · Member since 2012 · 20 posts · 0 votes
Hello BP family,
I have located a 32 unit (8 four-plex) property that is in really great shape. It's 30,000 sqft and sets on 15 acres in a medium size city here in Missouri with a few large colleges. I am still pretty green and wouldn't feel comfortable jumping on this property alone even though compulsion tells me otherwise :). The monthly rent rolls bring in $13k a month and with roughly $650 in minor cosmetic repairs/updates per unit could raise monthly rents to $15k.
I really like this property and believe I could get it for $950k. Does anyone have any connections that would be interested in a multi-unit property such as this?
Investor · Gilbert, AZ · Member since 2015 · 145 posts · 48 votes
10y
That might be a bit tight, Nathan, but trust me, I'm no apartment guru!
For example, I passed on a 36-unit building here in Springfield and the rent rolls are $17,750/month. Purchase price was $1.0 mil. I ran the executive summary buy an expert who said the property was a deal in the $750-$800k-range. That's his typical "sweet spot" (in terms of cash-on-cash-returns) for his investment pool.
But I still feel if everything panned out (maintenance, capital expenditures, etc.), it would have been an attractive buy even at $1.0 Mil. The property did sell rather quickly, so obviously someone thought the same thing I did!
My point is that just because a deal doesn't fit your expectations doesn't mean it won't fit someone else's. But you have to have the numbers to back it up. If' you're happy with the rate of return and can swing it, make a deal.
I didn't really bring anything to the discussion, did I? Hahaha....Oh well, good luck!