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
Financials:
Income:
Annual rents 1170000
15% Vacancy rate 175000 (market is less than 10%)
Eff. Gross Inc 994500
Expenses:
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.
http://cmortgageusa.com
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