Advise needed, please evaluate this deal - Posted by Isabella

Posted by terryr on August 25, 2001 at 11:53:02:

post this on main bulleting board

Advise needed, please evaluate this deal - Posted by Isabella

Posted by Isabella on August 22, 2001 at 21:20:33:

30 unit (1/1) Apartment complex next to university.
Asking 1.5MM
Seller quoted 8.5 Cap rate
Gross at 243k
NOI at 134.5k
vacancy at 6.5%

Assuming the numbers are correct, location is impeccable, what’s a reasonable sale price?

For financing, I’ve found 10% down at 7.5% for 25 yr with 1 point. Any creative ideas to lower out-a-pocket cash up front?

Any strategies for driving the negotiation to the target sale price?

p.s. Is expense of $5.25/sf kinda high?