10 Unit Apartment
I'm looking at a 10 unit apartment in a small town. This is the first deal I've looked at so I'm not sure if this looks way off or not.
It's two 2500 sq foot buildings. I have yet to see the inside but the average size works out to 500 sq foot units so these are pretty small.
The flyer the owner sent has this listed for monthly expenses.
$ 25 Grass/Snow
34 Trash Pickup
376 Heat Bill Total Both Buildings (Averaged over 12 months)
75 Electric Total Both Building (outside lighting, furnace motors, sumps averaged over 12 months)
539 Water Bill
65 Insurance ($100K Liability Policy Only, Auto Owners)
300 Taxes
250 Cleaning/Maintenance/Repair
$1664 Total Reoccurring Expenses
Current Monthly Income From 10 units $3950 @ $395 per month per unit
Difference Between Monthly Income and Reoccurring Expenses: $3950 – 1664 = $2286 net
He included a tax bill from 2013 that has the tax assessment listed as $56,000. The asking price is $169,000. I'm working on making a spread sheet I saw in another discussion to evaluate better but does this send up red flags for any of you?