Updated almost 7 years ago on . Most recent reply
what is the ROI on this property and is it worth buying?
Hi i'm new here, new to this arena. I was looking into an apartment complex with 11 units most of which have been renovated. Here are the numbers:
Gross annual income: 180,000
Expenses: 60,000
Net operating income: 120,000
30 year mortgage will likely cost me between 9,000-10,000/month.
Is this something worth looking into?
Most Popular Reply
What all is included in those expenses? With the numbers you posted, you will just be breaking even every month. Any unexpected costs outside of your projects will cost you money. Also, how much money will you be putting into this deal? With these numbers, it doesn't look like you would get any return on your initial cash investment. Perhaps you could negotiate a better deal to make the numbers look more appealing? Or are rents below market value and could those be increased?
- Amy Kendall