Could this be a deal? - Posted by David(Seattle)

Posted by Patrick S. Lawson on April 19, 2006 at 16:55:19:

Way overpriced…Let me guess…This is in NY, FL, or CA?

Could this be a deal? - Posted by David(Seattle)

Posted by David(Seattle) on April 19, 2006 at 16:53:28:

Well I saw a 16 unit apartment building for sale due to the owner is getting older and does not want to manage multiple properties anymore.The property does need some updates on the roof and the plumbing on the north side of the building and could use some cosmetic touches in the units. The
building is fully rented at this time and has historically low vacancy rates since there is such a shortage of affordable rentals in that area.
The Cap Rate is low?
Could this be a deal?
Here are the numbers I was given:

Gross Annual Income:$103,620.00
Other Income:1,200.00
Total Annual Income: $104,820.00

Property Taxes: $13,332.00
Insurance: $4,500.00
Water/Sewer/Garbage: $10,000.00
Electical: $500.00
Maintenance: $4,000.00

Total Annual Expenses: $32,332.00

Annualized Operating Returns:
Scheduled Gross Income: $104,820.00
(Less Vacancy 5%):($5,181.00)
Gross Operating Income: $99,639.00
(Less Expenses):($32,332.00)
Net Operating Income: $67,307.00
Capitalization Rate: 4.43%
Sales Price: $1,520,000.00