Apartment Complex Flip
Has anyone flipped an apartment complex before? I'm trying to figure out a reasonable sale price for a complex I have under contract.
Is there some formula you can use to determine if the potential buyer will still have cash flow after paying the birddog?
when I was a young man (right after the amercan revolution-- I'm younger than Lufos) the old german guy who taught me the business had a rule. Any building anywhere any time is worth 10 times its net operating income. 9 times net is a good deal. 8 times the net is an excellent deal.
At 7 times the net you come find me.
We bought a lot of apartments at 7 or 8 times net and sold at 9 or 10. sometimes we'd even operate them for a year and increase the net.