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
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.