20 Unit Apartment - 2 Buildings
This looks like a good deal, but it has been on the market for a while now and I would like some advise on whether it is as good as deal as it seems. There are two buildings; one with 16 units and one with 4 units. There are 8 one bedrooms and 12 two bedrooms.
Asking 550,000
Monthly rents 9,412.00
Taxes semi annual 2,422.00
Gas avg monthly 1,250.00
Water monthly 400.00
Electric monthly 300.00
Trash monthly 90.00
Maintenance monthly 800.00
Insurance yearly 6,500.00
The specs show 100% leased to a combination of regular and S8, with several elderly tenants.
From the information provided, is this a deal that could make money? Thanks.
A suggestion:
Get all these income and expense numbers into the same time frame. What you are attempting to do is calculate the Net annual Operating Income. 10 times one years NOI is a good deal. NOI divided by the purchase price is the Cap rate, there are tons of discussions here about what a good cap rate is.