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

Comments(2)

  • sanjosee21st April, 2005

    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

  • flash200024th April, 2005

    Thank you for the information. Want to make sure that I do not offer to much for the property.

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