I have been mostly focused on analyzing MHP's in the recent months but took a flyer and called about an 8-unit apartment building today. Turns out the owner was open to selling and threw out a number that didn't sound to bad. I'm not as familiar with the costs associated with owning and managing an apartment building so I would appreciate any advice in coming up with an accurate NOI.

Asking Price: $500,000

Units: 8 (2 bed/1.5 bath in a really good area of a mid sized town)

Rent Rates: $800/unit

I have not been inside any units so I dont know what state is it in but the outside is brick and looks good. Parking is adequate. Rental demand is high in this market but I'm not 100% sure on what they could be raised to or if they could be.

I ran an analysis that yielded roughly $1,800 in net cash flow each month and 20% COC return which obviously sound good but I'm sure there are things i'm not accounting for correctly.

Any advice would be appreciated.

Look at the expenses needed to run the place, get a rent roll. Doing your due diligence is important when purchasing a multi. Good find! 

I mean from your description this sounds like a home-run, however not having all the details could make this a nightmare.  Due-diligence will be key in this deal.  Either way, it sounds like this has the potential to be a great deal.  What market are you in and how do you plan to fund the DP?