I think i have found my first deal but need some help…
10 unit complex all 2br 1 1/2 bath rent for 700 month owner pays all bills asking price is 350,000 opp cost is 57824 in '04 gross is 64705 in '04 property is located in historical district and close to the university of texas medical branch (good location) it is obviouse the expense could be cut by seperating the meters…but im not sure how to determin the value of a complex…what are your thoughts any input is greatly appreciated…
more info on deal the property is being managed by a managment company not sure at what % i would guees @ 10%
Well based on what you’re saying, the first thing you need to do to figure out the real value is get the comps on 10 unit buildings in your area…
Do you have an account with a title company or friends with a realtor who will get you the comps? this will give you an idea of what it may be worth…
Now based on your figures you show a +cashflow of $6881 for the year, but is that with full occupancy, 80% occupancy, ? Depending on the vacancy rate of the building, will determine your net profits… Pay attention to the rent rolls for the year…
Are you working with a team in your area? Where are you located?
Property values can be looked up online. For example: Harris County Appraisal District . you will have options to search the particular property using the address.