I am considering making my first offer on a 4-plex that is being offered for $99,000. Each single bed unit is renting for $300 and there is not much room for rent increses since this building is surrounded by newer Apt. complexes offering single bed units for $315.
Figuning a 10% return on investment and current rent levels, I would have to get the building for about $67,000 using convential means. Something close to his asking price then requires 30-year terms to assure cashflow. Although I am very new to this, I think there is something in this deal that I am just not seeing. Any suggestions on how to make this happen would be helpful…Rick