Good deal? - Posted by Arif

Posted by brandoncbsre on September 16, 2007 at 12:49:50:

You mention that it has low occupancy, how low? The numbers look decent. The taxes look low compared to what we pay around here. A 50 unit here that I looked at awhile back for $1.5 mil had taxes of $33,000 a year. Just make sure you figure in the CURRENT vacancy in your price. It is a problem that you will have to fix and they should not profit from that. Good luck and hopefully someone else with more experience than me will chime in.

Good deal? - Posted by Arif

Posted by Arif on September 15, 2007 at 18:01:54:

I found a deal on a 200 unit apartment complex with out of town owners. The property is currently running a very low occupancy rate which is fluctuating monthly. The details of the deals as I know so far are as follows:

Sales price 3.8M
Rehab 32 units 200T
Total 4M

Annual rents 1170000
15% Vacancy rate 175000 (market is less than 10%)
Eff. Gross Inc 994500

Taxes 40000
Insurance 40000
Utils 80000 (water, trash, outside lights, etc)
Mgt 35000 (we’ll hire our own mgr)
Maint. 150000 (est.)
Lawncare 12000

Tot. Exp 357000
Cashflow 637500

I’ve found a few comparable properties that sold for 30k per unit that were similar age, amenities, and within about 3 miles of the subject properties. Based on that I “think” the property is worth atleast 6M. What do you guys thinks?

Re: Good deal? - Posted by james(CA)

Posted by james(CA) on September 21, 2007 at 23:11:04:

I think $637,500 is actually your NOI not cashflow. Depending on financing terms, what will be our cashflow?

Re: Good deal? - Posted by James

Posted by James on September 20, 2007 at 21:19:33:

Our lenders would like to make a financing proposal.

Re: Good deal? - Posted by Romello Love

Posted by Romello Love on September 18, 2007 at 06:04:11:

What is the number of vacant unit as well as the rents on those units. Sounds like a great deal so far from the figures. This is something I might be interested in. Phone 901.461.7004