I’m working on a deal that I need help with…Seller is selling a all in one 30unit Resident with 12 commercial unit complex for \$1640000…I think the price is too high but owner is willing to carry a note…I want to offer him \$1000000 but I just dont know how I should structure this deal if it is a deal…Here is the break down…Is this a good deal or should I run away fast

# of Units Unit Type Rent Monthly Yearly

4 studio \$400 \$1600 \$19200
20 1 bdrm \$425 \$8400 \$100800
6 2bdrm \$500 \$3000 \$36000
12 Commerical \$3900 \$3900 \$46800
Vending \$500 \$6000
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\$17400 \$208800
Vacany loss \$1740
Total operating income = \$15210
total expenses = \$6852.51mnth or \$82230.12yrly
NOI = \$100289.88

Future Income Increase

Actual Commercial Rental 42,093.00

4000 ±sq Ft Commercial Space (vacant-owner) X \$9.00sq ft 36,000.00

4 studio units @ \$400 per month X 12 months 19,200.00

20 1 Bedroom Apartments @ \$450.00 108,000.00

6 2 Bedroom Apartments @ \$550.00 per month 39,600.00

Vending 6,000.00
250,893.00 = NOI

Go back and check your inputs. Your math is off with the income.
Not sure how you’re factoring expenses or the vacancy, but it looks like a direct % of monthly income, which isn’t necessarily how you should be doing it considering there is income from other sources involved.

However, just using your numbers i’m seeing something like \$1,000 positive cash a month. That’s considering a 7% interest rate with a 20% DP. either way, \$1k positive per month for this building will be very tough to manage. alot can go wrong with 20 units and commercial property to manage.

If one more unit goes vacant or expenses go up just 2% you’re going to be in bad shape.