 Real World Multi Qs (by David [NC]) Feb 20, 2019 12:20 PM
 Real World Multi Qs (by Richard [MI]) Feb 20, 2019 12:40 PM
Real World Multi Qs (by Still Learning [NH]) Feb 20, 2019 12:49 PM
Real World Multi Qs (by Live The Dream [AZ]) Feb 20, 2019 12:56 PM
Real World Multi Qs (by David [NC]) Feb 20, 2019 1:16 PM
Real World Multi Qs (by David [NC]) Feb 20, 2019 1:17 PM
Real World Multi Qs (by Sisco [MO]) Feb 20, 2019 1:28 PM
Real World Multi Qs (by WMH [NC]) Feb 20, 2019 1:30 PM
Real World Multi Qs (by WMH [NC]) Feb 20, 2019 1:32 PM
Real World Multi Qs (by GKARL [PA]) Feb 20, 2019 4:21 PM
Real World Multi Qs (by Beth [WI]) Feb 20, 2019 5:52 PM
Real World Multi Qs (by Robert,OntarioCanada [ON]) Feb 21, 2019 3:24 AM
Real World Multi Qs (by plenty [MO]) Feb 21, 2019 5:48 AM
Real World Multi Qs (by David [NC]) Feb 21, 2019 7:17 AM
Real World Multi Qs (by Still Learning [NH]) Feb 21, 2019 7:58 AM
Real World Multi Qs (by David [NC]) Feb 21, 2019 8:09 AM
Real World Multi Qs (by Robin [WI]) Feb 22, 2019 5:24 PM
Real World Multi Qs (by Ray-N-Pa [PA]) Feb 23, 2019 2:59 PM
Real World Multi Qs (by David [NC]) Posted on: Feb 20, 2019 12:20 PM
Message:
There is an apartment building for sale - 16 1 bedroom and 8 2 bedrooms. pretty much 100% occupied. 1 bedrooms bring $375 and 2 bedrooms $500 per month.
Total income for 2017 was 1092111, expenses 61306, and net was 47,905.
What would you pay for this building? I'll post the asking price later maybe tomorrow. Just seeing what everyone else thinks it is worth. After all, for multi, it is all about cash flow.
--71.217.xxx.xxx |
Real World Multi Qs (by Richard [MI]) Posted on: Feb 20, 2019 12:40 PM
Message:
IF expenses and operating costs are good and none missing AND the property needs pretty much no repairs or major maint, then I'd have to consider location, tenant mix and tenant reliability.
Since there are many 1 bedroom units, I'd want a 12 cap which looks to me like 399K maximum to make me interested in a look. Of course numbers would be higher in prime areas.
$375 a month is low in my area and would only be at that level in a C minus zone, if we had any zones like that (we don't -- that's one reason I live here). Here studios and one BR units start at $500-550, 2 BR at 650+.
Any repairs needed, or other potential problems would reduce that number.
What are the numbers for 2018? --23.121.xx.xxx |
Real World Multi Qs (by Still Learning [NH]) Posted on: Feb 20, 2019 12:49 PM
Message:
I can’t even begin to figure that out... $375? My 1 bedrooms are $1050-1200. What is the age and condition of the building? --24.61.xxx.xx |
Real World Multi Qs (by Live The Dream [AZ]) Posted on: Feb 20, 2019 12:56 PM
Message:
Not enough info, but...
At 10% cap rate $450,000. If located in SoCal or New York, 16 MILLION! --47.216.xx.xxx |
Real World Multi Qs (by David [NC]) Posted on: Feb 20, 2019 1:16 PM
Message:
Come on fellas don't kill me on specifics. Assume it is well taken care of and it is professional managed and all the expenses are accounted for and it is in small town america and not a major metropolitan district. --71.217.xxx.xxx |
Real World Multi Qs (by David [NC]) Posted on: Feb 20, 2019 1:17 PM
Message:
Tax value if you are interested in 800,000
--71.217.xxx.xxx |
Real World Multi Qs (by Sisco [MO]) Posted on: Feb 20, 2019 1:28 PM
Message:
9 cap $532,222.
Given your response that is in good condition and you have verified that all expenses have been included. --72.172.xxx.xx |
Real World Multi Qs (by WMH [NC]) Posted on: Feb 20, 2019 1:30 PM
Message:
Your numbers are not adding up. Please be sure you put the numbers in correctly. --50.82.xxx.xx |
Real World Multi Qs (by WMH [NC]) Posted on: Feb 20, 2019 1:32 PM
Message:
Way too much work for less than $50k net on 24 units. Less than $200 per month per unit average? My times is worth more than that! --50.82.xxx.xx |
Real World Multi Qs (by GKARL [PA]) Posted on: Feb 20, 2019 4:21 PM
Message:
Where it's located affects price and risk greatly. I'd pay less for something in a small town. --172.56.xx.xxx |
Real World Multi Qs (by Beth [WI]) Posted on: Feb 20, 2019 5:52 PM
Message:
I have seen really low rents in small towns when an apartment building is in the rural housing program. Even when the building gets sold, the program remains in place. Don’t know if that is a good thing as I “think” (but don’t actually know) that the program keeps rents low. --47.12.xxx.xx |
Real World Multi Qs (by Robert,OntarioCanada [ON]) Posted on: Feb 21, 2019 3:24 AM
Message:
Before considering check to see actual copies of all the utility bills, property taxes, garbage disposal. If all the utilities are included then the net operating income is reduced. Low rent will mean a low vacancy rate. Check to see the age of various components like the roof, boilers, windows. Capital expenditures can quickly drain income. A roof will have a life expectancy of 7 to 10 years depending on the type of roof. Now in the future it is best to get out of all inclusive as utility bills in the future no one knows what is going to happen in the next ten years. --147.194.xxx.xx |
Real World Multi Qs (by plenty [MO]) Posted on: Feb 21, 2019 5:48 AM
Message:
Real World Multi Qs (by David [NC]) Posted on: Feb 21, 2019 7:17 AM
Message:
For all those in suspense. The apt building is for sale for $999,999. Which is a ridiculous 4.7% cap rate. I guess my point is what the seller thinks it is worth and what most of us think it is worth are worlds apart.
I would say $500,000 would be a generous offer. I believe there is room to raise rents but 1 bedroom apartments are what they are around here and that is usually cheap and inexpensive.
As some one mentioned dealing with 24 tenants to earn 47K a year is lots of work.
Just sharing something I saw in my home town. --71.217.xxx.xxx |
Real World Multi Qs (by Still Learning [NH]) Posted on: Feb 21, 2019 7:58 AM
Message:
I wonder how long it will sit on the market before reality sinks in. --24.61.xxx.xx |
Real World Multi Qs (by David [NC]) Posted on: Feb 21, 2019 8:09 AM
Message:
It's been on the market for 150 days. The county just did a tax re-evaluation and everyone's property values are going up (and thus the associated taxes). --71.217.xxx.xxx |
Real World Multi Qs (by Robin [WI]) Posted on: Feb 22, 2019 5:24 PM
Message:
I think you have an extra digit in your initial numbers. I'm guessing it grosses about 100K/yr, not 1 million? You're right, they're asking too much. --204.210.xxx.xxx |
Real World Multi Qs (by Ray-N-Pa [PA]) Posted on: Feb 23, 2019 2:59 PM
Message:
Real world......values are local. I would go to loopnet and look up the cap rates of places that were similar to my own and learn what caprate they have.
I have seen caprates around here as high as 13 and as low as 5% Much depends on the condition and location within the local market.
I wouldn't consider buying a place with a caprate under 7.5%, in locations where values are higher - people do it daily --72.23.xxx.xx |
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