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Updated almost 13 years ago on . Most recent reply

User Stats

18
Posts
1
Votes
Jeremy K.
  • Real Estate Investor
  • Lakeland, FL
1
Votes |
18
Posts

Question about offer price

Jeremy K.
  • Real Estate Investor
  • Lakeland, FL
Posted

Hello, I have found a mulit-family property (5 units) and have projected the NOI to be $14,803. The building is about 40 years old but appears to be in pretty good shape (I will have an ispection done to verify). The current owner of 6 years has done quite abit to maintain the property (re-plumbed all units except one, new roof, new windows, new Ac's, updated electrical). The units themselves are in ok shape but nothing has been changed in at least 10 years. I am estimating or at least planning on updating the units over the next few years for a cost of about 18k.

I am going for an 11% cap rate so my I am going to offer $134,574 - 10,000 (estimated closing cost) - 18,000 (rehab) for a final offer price of $106,574. Does this sound about right or am I missing anything?

Thanks for any advice.

Jeremy

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