Mike,
Before you can decide if it is a good deal or not. You need to know a few more things.
What are the rents now?
Electricity?
Water?
Sewer?
Vacancy?
Taxes?
Insurance?
If you can get the 10K for rents and the Mortgage is @400K that does leave a lot of room to have positive cash flow. Just get all the numbers and see what happens.
Add up all the rents and subtract all the expenses, including mortgage payment, if there is money left over that is a good thing.
I wanted to get some feedback on an investment opportunity in my area. One of the larger developers in this particular area is trying to sell a 36 unit “apartment” complex for $475,000. This in itself sounds like a pretty good deal but let me give you some more specifics. I did some research and found that these are all one room efficiencies. Basically, each unit contains a room with a limited kitchen and a bathroom. There is no garage or other storage area, and the rooms are certainly not large. I need to do some more research to find what kind of rents these units could obtain. Initially, I was thinking you could charge at least $300.00/month. Hypotheotically you could bring close to $10,000 a month in rent. Additionally, this apartment has been on the market for awhile and I somewhat know the owner. I think I could get this for much lower, maybe as low as $400,000. Any thoughts on this opportunity would be greatly appreciated. Thanks!