Merry Christmas! Just for fun…
Does this even remotely seem like a possible deal?
http://masoncity.craigslist.org/reo/4813393308.html
What kind of due diligence would I need to do to determine if this might be a possible deal?
There’s no information. A picture isn’t enough.
What’s the GSI? The Expenses? CAP?
Ask to see the income tax returns for the past 14 years, which I doubt they’ll let you see. The ad sounds fishy and my guess is they are going to try to hard sell it. 100% occupancy in 2014 and 99% occupancy in 14 years? Really? So how are they able to post pictures of vacant units in mint condition if it’s 100% occupancy? Why aren’t they posting pictures of units with furniture that are lived in instead? Second, why are there only 3 cars in that huge parking lot and why do they look like they are only worth a grand a piece? Do two of the cars belong to the live in owners?
My guess is the sellers are lying about the vacancy rate and expenses and it’s way overpriced. Before you do anything, you want to have a sit down and see their income tax returns on the building to figure out what the income and expenses truly are. If they refuse to show it and give unsubstantiated estimates, which I’m guessing they will, NEXT property.