I’m a new investor. i contacted a seller on craiglist about his Apartment complex, and here is what he said:
Please help, how do I proceed with this information, and does this qualify for a great deal if at all? Thank you
[i]
128 units + 1 office = 123 efficiency and 5 - 1 bedrooms (doubles or adjoining)
Three buildings
One building is entirely new as of 2007 (including roof) due to storm that damaged roof and insurance did not act quick enough so 48 of the 50 rooms were remodeled down to the cement block.
About 4 1/2 acres located across from golf course.
I was managing the first year and 1/2. Then my daughter became ill and I backed out and put managers in place. My daughter then had brain surgery which took me totally out of the picture. The previous management company was absolutely terrible. I had to fund the property myself part of the time. I have a new competent management company in place for the last two months. They are doing a great job and getting out all of the tenants that are non-payers etc from the previous mgmt company.
Current rent roll at about 73 from 56 when new mgmt co took over. Average rent per unit is about $400
Right now it is not making any money since just getting the rent roll back where it needs to be. Currently working on getting Section 8 (SRO) in place.
I’m looking to sell or lease/lease with option to purchase.
The p/l spreadsheet if from the previous mgmt company. The numbers are a little crazy. Keep in mind that it was an all cash business. I.e. We are currently taking in about $800 per month for laundry where they were only taking in about $200.
When I was running, my break even point was around 100 units.
Lease would be $18,000 with incremental increase (covers mortgage, taxes, insurance)
Purchase would be $2,400,000[/i]