Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
Eh, Marginal deal but place looks good and might be a good investment if you can get the price reduced down . Your expenses are a bit optimistic .. vacancy ought to be higher same property manager
Lake Zurich, IL · Member since 2018 · 2 posts · 0 votes
7y
Thanks Dennis, I took another shot at the numbers, with a rent that is more in line with the area $600 vs $500 per apartment. I also increased my monthly expenses by 30% (vacancy 5% of rent, maintenance/cap ex 14% of rent). I am self managing so, no increase there. The apartments are clean, don't need anything and have good existing renters who want to stay. With the new numbers I am at $489 cash flow, which I know is still close to the minimum for considering a deal. Already talked seller down from $190K, so $168K is where I am in the due diligence period. Yes, I am new at this and I know I shouldn't be evaluating numbers during due diligence, but some of my original assumptions were bad when I made the offer. Regardless, with my $600 rent, less optimistic expenses and a $489 cash flow, is it worth proceeding? Thanks, Pete