Analyzing a 25 unit apartment
So Im working towards investing in my first multi-family property. Ive listened to many podcasts for months, and have read a fair amount of books on the matter as well. I know the next step is to start networking, and learning how to analyze property.
A 25 unit apartment became available in my hometown, It sits on a river and is just a couple blocks from the beach. I called the realtor and she gave me the pro forma on the property.
Its technically losing money, so would this be considered a good investment because there is a lot of room for improvement, or does it mean run for the hills and avoid this property?
Not sure if this makes a difference but Im not afraid of a fixer upper, and don't mind putting in sweat equity where I can to save some money since it will be my first multi family property (maybe not this property, but some other one will be).
My question is this:
1. Are there any books, or websites you recommend that really break down and show you how to properly anaylze a property once you are given some numbers
2. Has anybody dealt with somebody selling a multi family complex that has tied in their personal expenses. For example, this guy bought a house, and had his car listed as an expense. How do you know what other expenses can be "taken out" of this equation?
Any tips or suggestions would be great!
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Quick glance shows this may be a slam dunk property. Looks like the current owner ran his personal expenses through the property. New house purchase, Toyota car payment, meals (@$4k+), multiple repairs line items, $25k for electricity etc ....