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Updated almost 11 years ago on . Most recent reply

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Faye Fu
  • Boston, MA
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Please help! Trying to buy an apartment building

Faye Fu
  • Boston, MA
Posted

Hi,friends

 I am helping a couple friends to buy an apartment building . It is located at a college town, total 32 units and 46 beds. It was built in 2011-2012. Last year's net operating income is 266,000. seller is asking 3.65 million. 100% rented. The seller is pretty firm with the price, because the condition and location. Do you think it is worth this much?

My friends are from overseas, one has green card  for couple years, another one doesn't have. It will be difficult for them to get loan.

I have never dealt with apartment building before,but they trust me, I really want to make this work them, any advise will be appreciated.

Thanks!

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Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
14,128
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Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

$4 million is too much for $361K in gross rents.

$266K is unrealistically high vs. gross rents of $361K.  That might be the actuals for the years of data you've been given, but won't be the case over the long term.

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