6 unit--$125K asking - Posted by MaxC

Real Estate Investing
1

Posted by Kris Jones on August 10, 2008 at 12:09:05:

Try to find out the GRM (Gross Rent Multiplier) of the surrounding community. Multiply that figure (Or take the national average of 10) by the Gross Scheduled Income.

If you could get it for 80k, that would be great. But I doubt you can get it for that low amount.

So are your total annual expenses $14,700? ($5,000 + $9,700)

If so, you have a NOI of $300. (15k from current rents - operating expenses of 14.7k)

In that case, your cash flow is really poor. I’d try to find a complex with 100% occupancy.

I try to stay at a cap rate of 10%. Which would be 3k selling price, which is totally not going to happen.

2

6 unit–$125K asking - Posted by MaxC

Posted by MaxC on August 06, 2008 at 15:22:03:

I’m looking at a 5 unit apt. building with a 800SF workshop/storag building attached with 2 commercial overhead doors.

Asking is $125K down from $175K.
2 units with longtime tenants leased at $450 each.
2 empty units
–market is probably $525 each on these 4
1 efficiency leased at $350
The workshop might rent for $300

Current rent $1250/mo
Potential for 3 empty units $1350/mo
Potentially $2600/mo

@$5000 in deferred maintenance–really not bad.

Expenses $9700

How does $80K sound for this property?

$100K?