I’d suggest that you are not ready to start laying out your money. You have given some good information but nothing about the asking price. The main thing, however, is that you have not spent the time to educate yourself so you can answer that question.
I suggest that get some books on real estate investing at your local library and start studying. Also, you can start reading posts here on the topic. For apartments, the “commercial properties” board is more appropriate than this main one. However, this sounds like a small-time property that is discussed on this board.
I recommend that you read my post for beginners by putting “beginners success” into the archive search function for this main bulletinboard forum of this CREONLINE.COM website.
What you are asking for is a course or a book of information, not just a simple answer as is appropriate on this forum, in my opinion.
I was wondering how to properly evaluate the value of a multi-unit building. The property is a 3 unit apartment building: 1 two bedroom apartment and 2 one bedroom apartments. The property generates 24,600 dollars per year in rents with approximately 6,000 dollars in expenses (includes taxes and insurance). I?ve yet to get into the apartments but have been in the building?s hallway and engineering spaces; everything looks real good. The building comes with a coin operated washer and dryer that earns approximately five hundred dollars per year. Each apartment is individually metered for water, gas, and electric. The property has a large parking lot with ample spaces for the tenants. The property is assessed at 188,000 dollars. The current yield is 13 percent. The property is 50 years, but it appears to be in great shape. The property is located in a decent neighborhood; 2 blocks from a commuter train station and 1.5 miles from a major university. The seller is fairly motivated with a desire to sell by the end of the year for tax purposes. The property was purchased in the late 70s for approximately 50 thousand dollars.