Deal Analysis Help Please

[Scott P.]

Hello all,

I am a newbie so I am looking for any help please on if I analyzed this deal well. I came across what looks like a great deal to me and i tried to research it as much as possible. Please let me know if you think this is a good deal or not and how I might best go about marketing it.

Deal overview
63 Condos in So. Fl. (on inter coastal) The average price on each unit is 155K. The average unit is 2/2.
The package is available for 9,750,000.
All units are currently being rented (8.21% cap rate)
The current rents are currently 75% of the low rental comps in the area and 48% of the current averages in the area.
The total rents are 800K / yr.
The recent sales comps are showing the units at 65% of ARV, and the home estimate sites (zillow, cyberhomes, etc) show the estimates 200K - 300K.

It seems like this is a great deal all around, but i have not been getting a huge reply yet and not sure if I am missing anything.

Thank you in advance for any help,

Scott

[Brian Levredge]

If you are checking those rents on a site like Rent-O-Meter or something else, they are likely to be on the high end. Even if they are correct, you are not going to be able to hit people with a $400 per month rent increase and not end up losing all or most of your tenants.