What would you offer?

[Will Stewart]

Have a 6 unit I am looking at in NH. 5 one beds and one 3 bed. Currently only 5 occupied (3br vacant, will rent for about 1600) renting for 3800 total. Taxes 10k, insurance 3k, utilities 7k. I figure 500/mo for capex and maintenance. owner pays all utilities but electric for five units, 3br tenant pays all. Class B area in an A town. Moderate to a lot of deferred maintenance. Once I get it cleaned up should be able to rent units for total of 6700/mo. Assume an 8 cap and 50% expenses that puts the end value at about 500k. Probably needs 50k to get there.

[Tim W.]

NOI/cap rate - expenditures. Id value it on what the property is actually making, not what it could rent for (the 3 bed is vacant).