Your thoughts-8plex
Hey guys, just was looking for your thoughts on this property. It is outside of my local area about 50 miles.
8 Unit Apartment Project constructed in 1979. The Building consists of 7-2 bedroom units and one ADA accessible 1 bedroom unit.
Multiple units are offered fully furnished to seasonal tenants. Others are long term. Primary rental sources are National Park Service School District, and USDA Forrest Service.
1) $400/mo 1 bdrm unit partially furnished, this lease expires at the end of October, will raise rent to $450/mo.
2) $500/mo 2 bdrm fully furnished, new lease at $550/mo started Oct 1.
3) $450/mo 2 bdrm not furnished
4) $425/mo 2 bdrm, tenant receives reduced rent to clean commons area
5) Vacant 2 bdrm
6) $450/mo 2 bdrm partially furnished, new lease at $500/mo started Sept 26th.
7) $450/mo 2 bdrm not furnished
8) $450/mo not furnished, tenant is leaving this month, will rent at $550/mo
They sent me the last 2 years taxes and the total yearly income was 19K in 2012 and 21K in 2013.
They these expenses for 2013
Advertising $74, Insurance $1824, Repairs $2234, Taxes $4457, Utilities $6848, Depreciation $1850
Rents received was $39095
This is in a very small tourist town as well. It is all new to me so I am not sure what cap rates are normal and even if the price is good or way out of line. You input is appreciated.