Looking for my first Apartment Building/Complex
I'm looking for any advice or tips on buying my first Apartment building/complex. The deal that I am looking at right now is a 9 unit "older" all brick building in a good area. Before I tell what the property is listed for.... what would you pay for this property? Also, I will be getting a portfolio loan with 15% down 4.4% for 7yrs- 25 year amortization.
9 Units
Gross Income- $57,420
Less Vacancy 8%- $4294
= Effective Gross Income of $52,826
Less Operating Expenses
Maintenance & Repair- 7719
Management 10%- $5282
Utilities- $4063
Insurance- $3466
Taxes- $6000
Total Operating Expenses= $26,530
(the 50% rule just so happened to be spot on)
Net Operating Income= $26,296