2 apartment complexes 124 units in Tennessee

[Stephen Stepp]

Looking for first of all advice on how to analyze a deal this big. What are the numbers I need to know. What kind of questions I should be asking during our phone conversation. How do you appraise something that big. Any advice will help and hopefully will have more info tomorrow on the deal .I will be looking for investors if this is something worth pursuing, so if you are interested in large apartment complexes. Pm me I want be able to post all info do to a disclosure.

[Coty Dowell]

You will need a rent roll and operating expenses. Try to get the last 3 to 5 years worth of operating expenses to see a trend. A very basic calculation would be:

Potential Rental Income - Vacancy - Operating Expenses = NOI

NOI / Cap Rate = Value of property

Cap Rates are tricky. It depends on location, condition of properties, and the surrounding market. This changes almost daily. Look for similar properties that sold recently and see what cap rate was used.

Good luck!