What are your thoughts on this property?
I am looking at an 8 unit apartment unit in Cleveland, Ms. This is a small town with a college and these units are rented up. the rent is $750 per unit and they stay rented. the selling price is $450,000. What are your thoughts on this purchase. There are no major repairs needed right now.
I have read several articles and many videos on investments of multifamily. It seems like a decent deal. 1.3% 6000/450,000=1.333% SOme people say look for a 2% here but this seems ok.
What are your thoughts?
Thanks for the question. I do not have enough information on this property to tell you if it’s a good deal or not. Even if the property is fully rented and remains rented, that is not a future income guarantee, so you’d need to include a vacancy rate in your evaluation. You’d also need to do your due diligence in looking at all income, expenses, etc. We have a lot of articles in our REI section that you can use to get a more clear valuation of this property. Here’s the link for your convenience.