Posted by Nick on October 10, 2005 at 09:04:47:
Thank you very much guys. I really appreciate the help!!
16 Unit Property - Posted by Nick
Posted by Nick on October 08, 2005 at 08:46:03:
Hey guys,
I am looking at a 16 unit property on Tues. and I was wondering what are some questions that you feel are most important to ask the realtor about the property? Thanks ahead of time for your time!!
-Nick
Re: 16 Unit Property - Posted by ray@lcorn
Posted by ray@lcorn on October 09, 2005 at 16:55:45:
Nick,
Nancy’s list covers the essentials.
For more details, read this article: http://www.creonline.com/articles/art-148.html
It’s an old piece (1999), so ignore the comment about Y2k, but the process hasn’t changed.
ray
Re: 16 Unit Property - Posted by Nancy
Posted by Nancy on October 09, 2005 at 15:46:05:
I’m new to apartment too, only got a 9 units… but here’s what you need to gather information on:
Ask for actual rents
avg fair market rents
unit mix
tax
insurance
vacancy rate of the property
Ave Vacany rate of the neighborhood
utilitie, who pays what and how much /month
other expenses you can think of
any existing contract that gets passed down to the buyer such as laundary, trash agreements
any deferred maintenance.
get all the numbers then calculate your cash on cash return and cap rate.never take what they give you.
good luck!
Nancy