Me and friends/Investors are looking to get started in the real estate market . We are interested and have focused our thoughts into Multi Family and apartment complexes .
Before we take action I would like to have wisdom from the members on the numbers. We are looking around Twin Cities and St Cloud area and have noticed that unless we get a great deal Property appreciation is highly unlikely .
What would be the best for us to balance appreciation / cash flow when offering on properties based on a hypothetical number.
Building A - 30 Units(Combination of 1,2 AND 3 BEDROOM UNITS)
Asking price $3.2 M -
Annual estimated rents - $315K
Area - St Louis Park
What might be the approximate costs and how much we should offer on this and what is the thought process for the offer.
Thank You in advance
We would need more information regarding expenses.
There is not enough information provided to help determine if this is a deal or not.
Based on very little information and having to make assumptions such as no additional income beyond rent (Garage rentals, laundry etc), vacancy of 5%, expenses for 30 units buildings are typically between 40-50% depending on class of property and age of building, assuming class C. I would say 3.2M is about half a million too much for that property. Many different factors such as current expenses, condition of the property, additional revenue opportunities, surrounding neighborhood/surrounding rents. It certainly could be a great deal also depending on the unknowns, I generally assume the worst case.
Give us more information and we can narrow it down better.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you