I am very interested in an opportunity to purchase a 72 unit storage complex that has a NOI of about $55,000 per year, that number also includes property taxes and insurance. This complex has great buildings that are very well taken care of and is 100 percent occupied; it is also located in a great location near lakes and a highway for advertising.
Any advice on how to come up with a top end bid that will win me the this opportunity while still being able to make a good profit?
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
4y
Do you know what typical Cap Rates are for that type of product in your area? If you don't know typical Cap Rate, I'd encourage you to pause on your online bid.
FWIW, I never believe anyone that says it is 100% occupied and NOI, by definition, should include taxes and insurance.
I currently do not know the typical Cap Rate for this type of product in my area. I will need to try to figure that out; is there an accurate way to go about finding the typical cap rates for certain areas?
I am also skeptical of the 100% occupied pitch. The NOI that they have posted seems like it does not include all of the actual expenses. I will need to do some more digging on getting to the actual NOI.