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Updated about 3 years ago on . Most recent reply

How to properly offer a fair value of a multifamily apartment
I am interested in a purchasing 7 unit apartment which is listed for $1.6 million with cap rate 4.40%. $136,500 annual rental income based on the marketing material which average about $1625 per unit rent monthly. Upon my underwriting based on actual numbers the annual rental income is $120K with as all 7 units bring in different income per month some are $1625, $1100, $1250 etc.
This is a class B property in Class A area. Seller has renovated all the unit and invested over $20 to $30K with the renovation. This is a turn-key multifamily meaning the new owner will not have to do anything except for raising rent.
What do you guys think?
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Ronald Rohde
#3 Commercial Real Estate Investing Contributor
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- Dallas, TX
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