Multi-Family and Apartment Investing
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated almost 10 years ago on . Most recent reply

Your thoughts on these numbers ...
Brick construction, 20 units , Built in 1970, Location NC, Area characterized as Class C. I drove through the area, there are new constructions happening on that street and the streets nearby. Property is master metered. All units are 2 bed rooms, 1.5 bath. Vacancy rate 85%.
As of today, all units are occupied @ $550 per month in average.
Below are the 2014 numbers. I also have the 2015 numbers (Jan - June)
Income (Jan - Dec 2014): Rent $ 100,810.00
Expenses (Jan - Dec 2014):
Taxes: $ 8,300.00
Insurance: $ 5,500.00
Exterior lights: $ 1,200.00
Water, Sewage, Garbage Collection: $ 11,500.00
Repairs and Maintenance: $ 16,000.00
Total Expenses: $ 42,500.00
Net Operating Income $ 58,310.00
Asking price $ 600,000.00 (about 30k/unit)
CAP RATE 10%
Roof replaced in 2012. 40% of HVAC Units are less than 2 years old. All other HVACs are still functional. In dire need of landscaping and interior upgrades.
Any feedback (positive or negative) would be appreciated.
Most Popular Reply

By Vacancy, did you mean 15%?
Master Metered includes electricity as well?
Room to improve the rents?
Room to cut expenses? They do seem low though.
Are you going to self manage or use a PM?
If you set the expenses to 55%, that gives your roughly 45K NOI, with a 10 cap that gives you 450000. With your numbers holding it at 583000. So double check the expenses for PM and Electricity because that looks like a 133K difference.