12units And 8 Storage Units Is It A Good Deal?

captaincharlyt profile photo

I have an offer in on a 12 unit apartment building with 8 separate storage units.

Here are some facts about the building I am hoping to hear of some factors I may be missing. In my mind it is a pretty good deal.



Selling price: Around 260K

Units: 12 2-1 units

Storage Garages: 8

Rent for the 2-1 is 325 a piece, Possible upside to 380

Storage units rent 50 a piece

Monthly income if fully occupied is currently $4,300



Expenses:

20% down than payment is about 1780

Monthly Insurance is about 300

Prop Manager (Close Relative) 275

Estimated repairs monthly 400

Electric 55

Trash 90

Total monthly expenses 2900



Property is in a so-so neighborhood and the police have had to come out fairly regularly. Nothing too serious, noice complaints, domestic issues, and 1 drug situation.



My feeling is I would like to buy and spend another 10K on renovations. I would like to unload the tenents that are ruining the peaceful enjoyment of others and begin re-renting only to people who are not marginal. I believe my property manager is capable of doing this.

So what am I missing?

Thank you

Comments(1)

  • captaincharlyt25th December, 2005

    Turns out I had to let it go. Owner would not budge much on price and I see the renovations were going to be more like 25-30K. I may take a second look at it in a couple months after it has sat on the market. Perhaps he will be more willing to comprimise at that point.

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