Four plex apt bldg with NOI of $25,280. Sales price is $122,000. Anyone think this is good deal. Fully occupied not much deferred maintenance.
Well it looks like you have a 20% CAP rate which is high, but considering its a 4 unit you have to consider other elements of the property. Other elements would be the DCR(for loan purposes), how you plan to finance it, and what your debt service will be. Income and expenses can be panned out it seems, but I perosnally would go with something with more units because if one tenant moves out it will impact your NOI more than a property with more units… Of course you will close faster than a commercial property but it all depends on your goals with the property and etc. :beer Good Luck!!