Found Off Market 23 Units

[Bruce Harding]

Living in this area and going to school here I know a lot of people.

Found a property through a friend.  His girlfriend inherited a couple units.

She is not out actively seeking to sell yet but she is wanting to liquidate the properties she has.  I was mentioning that I was looking for something to my friend and this is how I found out.

I have to look at the numbers so I take this with a grain of salt.  He is a financial guy and here is what he told me:

23 Units

Almost always 100% occupancy

12% Cap Rate

Built in 1993

Asking about $1.5MM

No agents would be involved in the deal on either the buy or sell side.  Private deal.

Obviously this is all preliminary as I have to look over all the actual numbers so we shall see.

Sounds like a turnkey.  Have not looked at property yet.  

Was a brief conversation so don't know who manages it.

Numbers I understand.   What I need help with is evaluating the property with regards to future expenditures - capital or otherwise and forced value.

I have no experience in evaluating a house let alone an apartment complex.  I assume there is someone or service I can hire to do this ?

[David Bardwell]

@Bruce Harding if neither you nor the seller are experienced with this type of property I would recommend you both consider the value of engaging an experienced agent to represent your own respective interests. You'll get a lot of great input here but there's no substitution for a good agent on your side--especially when you're green! I think most would agree it will be worth every penny, even if you were to pay the commission yourself.