apartment complex

had a friend come to me and ask me if I was interested in a 50 unit apart. complex that has an asking price of $2.9 mil. and 1 offer of $2.2 mil. It is at full occupancy and is bringing in over $50,000 a month. It needs no work, and is in good area in St . Louis. Is this a good deal or what?
Any advice or suggestions on questions to ask?


For starters you need to find out what the expenses are, that’s going to be one of the bigger factors.

You tell me, is it a good deal or what? This will be determined by the details of the property. What are the expenses is there any deferred maintenance, is the area about to be developed or condemned, etc. You have to do the homework.

what are the typical expenses i am looking at? Some are obvious, some may not be. ??? Then I can let you know more



This is definitely NOT a good deal for you. If you don’t even know the questions to ask, the very last thing that you need is a commercial property with 50 units. I would strongly recommend getting some education before you even think about buying anything. Remember, the vast majority of new businesses fail. Without doing the hard work (starting with education), your chance of success is almost nil.

Good Luck,


tough reply, but I appreciate your honesty



You can get educated really fast…don’t get discouraged there are a lot of people who will help you build a team . See if you can get yourself to a Bootcamp, Dave Lindahl does one for apt complexes.

Here’s a rough list of expenses to ask to see:

RE Taxes
Snow removal
Trash removal
Mortgage costs

Enthusiam is the most important thing…watch those snowboarders!!

great reply marlo.

thanks alot


Also, since this is your first, make sure you have an experienced property management company or individual running it.

With such a good occupancy and cash flow, you should have not problem getting help with the financing. Please let me know if I can help.


It sounds like a good deal to me… There are other things you need to look at but don’t be discouraged… I believe that what is going to be will… Just do the numbers if it work for you then to it…

Anything is a bad deal if you don’t know how to run it or even estimate costs. With no knowledge of expenses, etc how exactly do you figure its a good deal? It might be a good price but it’s not a good starter building…

Go back and read my post!!! From He said it sound like a good deal… That’s why I told him to look at the numders…

Marlo is right. Dave Lindahl does have a great course. I have the home study course and I just came back from his boot camp. ( IMHO the Boot camp is all you need.) I learned so much but I still have yet to put it to the test.
If you go to the boot camp, just be careful of all the other presenters that give their sales pitch.
He packs the session full of information and takes the time to answer all questions. After the course, you will know all the right questions to ask.

great info all

I will check into seminar.


ask for a copy of the schedule E of their tax return it will tell you the true expences. all year long you are trying to make money and at tax time you are trying to save money so you look for all the deductions you can find. most of the time what they show you are the deduction ad what they report to the IRS are two very different figures. :wink: