Need your Advice! First Multi-Family Investment
Hi BP community! Special thanks to everyone who has offered advice and answers on this website. I have learned a great deal and your generosity is very much appreciated.
I am currently looking into possibly purchasing a 6 unit multi-family and this is my first multi and would like your advice for assessing the deal. Here's the facts I have:
Four 2 BR each with large storage unit w/ washer/dryer hookups
Two Efficiencies w/ washer/dryer hookups
Six carports with Storage Units
Well constructed building with a newer roof and all units but 1 remodeled. Well maintained property with VERY low vacancy. I know the local inspector and he agrees that the property is in very good shape. Yearly rents received $49,525. Total yearly expenses including advertising, cleaning, maintenance, insurance, professional fees, management, repairs, supplies, taxes, utilities, depreciation= $26,652.
NOI= $32, 038
The owner is asking $300,000. From my MLS comps, all I have available for comparison in the area is Two 8 units that sold for $300,000. These complexes were not in as great of shape as the Six unit I am looking at nor was the area as great, but nonetheless that's all I have to compare. The rent is comparable to the area if not just a little low, but the current owner has had some tenants for >20 years and hasn't increased rent on them for fear of losing them. ( apparently they are great tenants who don't cause any problems).
Thanks for ANY advice you can give on this deal. I appreciate your time!!!!!
Kelly