I have come across a 5 unit apartment complex in a college town off the market currently.
Owner is trying to sell since he is older and looking to retire.
100% occupied with leases through December of 2018
-Purchase price: $105,000
-Monthly rent: $2250
-Annual Tax: $1154($96.00monthly)
-Annual Insurance: $ 1275( $106 monthly)
-Property Management : 8% $180.00 monthly
-Rents are currently about 10% below market value.
-Each unit Separately metered so no utilities
-Renovated in 2016.
-Cap Ex budget -$ 200 a monthly
What am I missing and am I the only one thinking this deal is a steal?
I would make an offer contingent upon an inspection and see how much work the place needs and also confirm it is zoned to be 5 units
Can you do a quick title search? No one likes surprise liens.
This will also help you determine if a college town multi-uit is zoned properly like @Chris Seveney mentioned
@Jacob A. . Initial numbers look like a very good deal indeed. I would act on it fast and definitely before it hits the market. Of course property inspection shouldn't reveal any major issues.
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