Is this a good deal?

Need some advice. First commercial property.

32 units, built in 1975
Purchase price: $520,000
Decent condition, Brick, small town, 100% occupied

Gross rents: $134,400
vacancy loss: $13,400
Taxes: $12,000
Ins: $8000
Utiliites: $24,000 (all water paid by owner)
Repairs: $8000
Prop Mgr: $13,000

NOI: $55,600

Debt Serv: $43,000

My concern is age of building. Seems like good deal, anything I am missing?


This looks like an ok transaction, do you have a contract ready and in place as yet? Have you obtain funding yet, make sure you have a Lender that will be able to provide what you are looking for on this transaction, most Lenders will not go over 80-85% LTV. If you need a Lender that will do upto 90-95% CLTV let me know. Overall it sounds like you found a gem.