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Updated over 8 years ago on . Most recent reply

User Stats

12
Posts
3
Votes
Itiel Latova
  • Hillside, NJ
3
Votes |
12
Posts

Newbie - Portfolio Deal

Itiel Latova
  • Hillside, NJ
Posted

Hi all, 

I am new to the world on RE investing and trying to learn more everyday from BP. I am currently looking for deals, primarily small apartment complexes, to build up some passive income.

I came across a portfolio deal for 23 units. This consists of an 11 unit building and 6 duplex scatter around a 3-4 block radius. The asking price is $1.6MM. Here are a few more points to highlight: 

  • 8.18 CAP RATE
  • NOI AROUND $133,000
  • GRM = 7.3
  • Pretax Cash Flow = $58,886
  • Cash-on-Cash Return = 14.48 % assuming 25% down payment
  • All units are currently occupied

All these figures were posted on the prospectus and provided to me by the broker. From the surface does this look like a deal to look into & what other questions/info should I be asking the broker for?

Thank you in advanced for your help!

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