Complex decision. - Posted by Bill Taylor
Posted by Bill Taylor on May 21, 2005 at 10:35:24:
Gross Income $818,813
rep and maint 62000
mkt and promo 2198
on site payroll 35560
mgt fee 37763
gen & adm 7300
repl and reserves 29200
acct fee 880
tot expenses 362670
They have reduced the price from $4975000 to 4.7 mil.
do I have it right this would be a 10.3 cap rate. Would this cap rate be what is considered reasonable as far as investments go with apt complexes. These numbers are from 2003 and there is no way I woild go with these since our taxes have jumped up in some cases 100% here in Indiana. Also the inusrance rate seems quite low compared to somehting that was quoted to me yesterday on a 50 unit complex and it was at 36000 a yr with 1000 deductable. The ann rate went down to 26000 if I increased the deduct to 75000, I thought oh great(lol).
All advice would be appreciated as to if there was anything that I should be looking for that was not presented. Thanks, not only am I itching to buy a deal but will need to since I have some 1031’s that are also itching.