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.