Investor · McAllen TX · Member since 2016 · 27 posts · 4 votes
Hello, My Name is Peter Torres, I'm so exited to join this community of successful Investor. I'm ready to Purchase my first apartment Building, but i'm terrified that I could make a mistake.Can you please give me an input on this deal?
Units 8 in McAllen TX
Price 525,000
Gross Income$ 69,200
Vacancies 5.91% (4,093)
Total Net Income $65,127
Expenses $19821 (30.43%)
NOI $ 45,306
Debt Service $27,622
Cap 8.63%
Cash on Cash 12.25%
The Broker tells me that the property was remodeled completely and the expenses are low for that reason.
Please help out this "NEWBIE"
What should the Offer be? How Low should I Shoot for on the price?
@Cody L. Thanks for your response. But should I believe that they operate at 30% of expenses?
Not going to tell you what to believe. I know what I pay for various things so almost ignore seller provided financials. Some financials supplied are laughably inaccurate in both directions.
I tend to buy based on price per door and what I want to see in an area (and what I've paid) and price per rent ratios (also based on what I've seen traded / what I've paid).
So on a simple "how much are you paying for that rent roll" basis, that property is fine IMO. Because that's what you're doing when you buy a property. You're buying a rent roll.
Austin, TX · Member since 2018 · 6 posts · 3 votes
8y
@Peter Torres
Did you close on the deal? I was looking at a property and asked to see the rent roll and proforma, they wanted me to sign an NDA for sending me the documents. I'm wondering if you had a similar experience.