Need Advice On What Offer Should Be
This occupied two-story apartment complex was built in 1968 and consists of 100 units. The property has 26 buildings containing 12 one-bedroom, 44 two-bedroom and 44 three-bedroom units. Rents: 1bedroom 390 $4680 2 bedroom 490 $21560 3 bedroom 613 $26972 Total income 53K per month inc. fully rented. 636K Inc 441K estimated exp. Admin 104K Util 81K Oper 70K Taxes/ins 156K Res/rep 30K Current occupancy 40% Required repairs 500-750K Any input would be great. Thanks
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Using your numbers, this is what I came up with.
BTW , 40% current occupancy will kill your chances of getting a loan.
Will the owner carry a note until you can ramp up occupancy & rehab?
Terms here are very important, not just price.
your estimated expenses are 69% of Gross Rents(sounds high) which is better than underestimating, as most people do.
I would look to buy this deal under 2 million with great terms.
My first offer would be around $1.5
Thank you for the information. Want to make sure that I do not offer to much for the property.