Apartment building Investing
Good afternoon everyone I’m about to purchase this 8 unit apartment building and I wanted to run the numbers by someone with some experience or advice before doing so, so here it is:
I was initially looking to value add but I think stabilizing may be the better option here
Purchase price: 70,000
Est rehab: 50,000
ARV: 200k+
Cap rate: 6.17
Current rent: 350
Rent after reno: 525
Neighborhood: C
Current NOI: $4,320
After repair NOI (approx.): $21,100
Currrent vacancy rate: 62.5%
Estimated repair vacancy rate: 90%
Will be buying with hard money and refinancing.
I hope this is enough information, please let me know if you need any more information from me ! All responses will be greatly appreciated! Thanks BP family!