Evaluating a Multi Unit Building
BP Community - When evaluating/purchasing a multi-unit, are you typically paying the Present Value or Future Value. Everything I've seen/read to date has said to buy at the current value, however many of these properties are marketed at their future value. We're looking at a deal right now listed with the following numbers:
4 Unit Building - Asking 49,9
Future:
$550+ per unit = $2200 per month income.
Yearly income $26,400
Taxes $4250
Utilities $5150
Insurance $650
Total expenses $10,050
NOI $16,350
Actual:
Unit 1-3 = $1275/mo (Unit 4 - Vacant)
Gross Operating: 15,300
Taxes $4250
Utilities $5150
Insurance $650
Total expenses $10,050
NOI: $5,250
It also needs about 18k in repairs.
Any input on this deal and general evaluation tips would be greatly appreciated. Thanks!