Critique my Potential Purchase Lexington, Kentucky
Hi! I'm looking at my first purchase and I think I'd love feedback on the numbers I found
12 unit apartment building in Brucetown area
Purchase: 380,000, 20% down
Expenses, Annual:
Property Tax: 1400
Insurance: ~3000
Maintenance: 2000
Mortgage Pay: 19, 231
Vacancy: 3000 (5%)
Property mangement: 6000
Misc Cost: 200
Annual Income: 57000
Cash Flow: 25,000
NOI: 44,000
I'm really thinking that this may be the one I want to make my first purchase but I'm hesitant because it seems too good to be true. The cap rate seems kinda high. Also, some minor rehab appears to be needed for a few of the units. The area seems kinda like a C neighborhood If I do make an offer, I'm going to offer much lower because of these reasons.