Well maintained brick 12 unit building on wooded cul-de-sac. Building has (10) 2BR 2 bath with living room, dinette, kitchen, master bedroom with bath and large closet around 1000 square feet each; and (2) 2 bedroom 1 bath units around 800 square feet. All apartments have electric range, refrigerator, dishwasher, hood vent, garbage disposal. There are ten carports and 8 additional parking spaces. Security entrance. Apartments have balcony or patio. Laundry rm 2 washers 2 dryers. Building roof -2006, carpet roof - 2012. On site manger.
ANNUAL INCOME AND EXPENSES:
Water & Sewer $3289
What year built?
Class of neighborhood?
Local population growth rate?
Unemployment rate and trend?
All great questions. Most of which I need to research yet. This property was just listed, I haven't even had time to drive by yet. I'll answer what I can now below. OK, I found all these answers online.
Originally posted by @Jon Klaus:
What year built? 1977
Class of neighborhood? I've never really got a good definition on how to define this. But my guess is this is a B+ building in a B neighborhood.
Crime rate? C+ But improving since Concealed Carry passed in IL.
School quality? C The school district and board have had some issues lately.
Local population growth rate? -0.97% from 2000-2010, but expected to grow 4.19% from 2010-2014.
Unemployment rate and trend? 5.7%
Welcome to BP.
What about Capital Expenditure (Reserves)?
What is the vacancy rate & uncollected funds?
How much are you allocating for advertising & misc cost like bookkeeping, etc?
If you could provide these three figures as well, I could provide an proximate purchase price.
Hope it helps.
I think the question should be, "what would you pay?" It depends on your required rate of return and your estimate of the metrics. The calculations are the easy part.
I, personally, have trouble, determining my required rate of return on various investments such as stocks, buy and holds, flips, loans. Each investment must compete against my other opportunities.
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