Is this Cap Rate and Cash on Cash good for an apartment complex with 11 units?  

This is why you only see SFH, which command the highest market price, and large apartment complexes, which have economies of scale, being built. 

. ** We ask for T24/T36** Income: 1) Rent growth - flat for next 3 yrs and inflation for next 3 yrs 2) Any other misc income increase by 2% aka inflation Operating expense (Big ticket items - Lets assumes its a C property)1) Tax - 85% of purchase price and then 3% - Texas is a non disclosure state 2) Insurance (General Liability and/or flood) (example: Flood insurance in Alvin area is ~20K for 40 Unit complex on top of general liability) 3) Make ready (assume 10 units per year based on 90 unit )~10% vacancy 4) Run and Maintain - based on how much capex you will be spending 5) Management fee (6% for your size) may be a bit lower but for now keep it a bit higher 6) Utilities 7) Professional service (attorney/CPA/Lawn/etc etc) 8) Marketing fee Capex:1) Whatever you think is needed (Check roof, water/sewer line/heating aka boiler/HVAC system/Foundation)

This was a great deal in a great complex which is also in a very popular are of Louisville, Ky.

This was a nice complex in a good part of town with a lot of space inside the unit, including a basement.

People do it on giant apartment complexes.

Directly across the street there is a small apartment complex.

@Larry Majkrzak You'll want to investigate errors and omissions...and if you are super paranoid, maybe a liability rider...but if you are with a broker, they will cover this and bill you for it.To your LLC question...yes, an LLC is arguably the best business structure in the world...without getting too complex.

It is in a small 12 unit condo complex.

One condo complex I invested in approved the unit as a rental. but over the years, develop rules that they get to approve tenants and leases.