Need Help Knowing If This Is A Good Purchase? ( MULTIFAMILY)

[Marshall Zakarian]

I've been proposed a Class B multifamily building in a desirable area with low inventory. Below are the numbers.

9 Units( all one bedrooms ) ( 625sqft )

2 units= $880, 2 units= $800, 2 units= $725, 1 unit= $845, 1 unit= $670, 1 unit= $625.

Revenue: $74,700

Net: $ 55,000

There is no property management. Roof is 20 years old and furnace is about 35 years old.

Currently the rent is under average market rent. There is a few listings currently right now that are 500sqft for $925 in a less desirable street.

I'm pretty certain that I can get $1,000/month after I remodel the bathrooms, change the floors to hardwood, remodel the kitchens and new paint. This would total roughly about $100,000.

The seller first wanted $800,000 and after a month he called me said he will take $700,000.

The seller is motivated to sell and I'm pretty certain I can grab it for $600,000.

What do you guys think?? THANKS FOR THE FEEDBACK!

[Diana Pritchard]

Hey Marshall, 

@Marshall Zakarian I can do the analysis for you that will allow you to make a decision on what the property really worth . You can also present my analysis to your seller to leverage your position and negotiate further if you want. I can underwrite this deal for you in couple of hours and if you like what you see then you can pay me for my time.  You will get analysis that looks something like this; please pm me all the inputs you collected thus far. hope this helps!