Posted by ray@lcorn on February 09, 2010 at 17:37:03:
There are so many red flags here I don’t know where to start.
A fully occupied property with no deferred maintenance with a 49% cap rate?
If it was real it would never make it to market.
ray
Is this a good deal? - Posted by babu
Posted by babu on February 05, 2010 at 21:35:29:
I just got a lead which I feel is pretty good deal. I am planning hold this long term. This is a 48 unit apartment complex and the asking price is $325k and is valued around $970k. NOI is $160k. It is in a good location and fully rented at the moment and the property is in a very decent condition.
Is this a good deal on the surface?
Re: Is this a good deal? - Posted by Gary
Posted by Gary on February 20, 2010 at 20:10:06:
I think your going to find that there are a couple of other things going on here:
a) These numbers are likely “Proforma” either after stabilization or upon being fully-leased-up; and
b) There is likely major rehab to be done prior to ever getting anywhere near this kind of CAP.
Re: Is this a good deal? - Posted by Mike
Posted by Mike on February 15, 2010 at 08:55:33:
How did they get this value? $325k and $970k and fully occuppied? I can see it being possibly worth $970k if it was 50-70% vacant and u get it leased up!