Posted by GL - ON on July 13, 2003 at 08:28:14:
If you want to know how to analyse any apartment deal in 2 minutes flat, go to the main board and do an archive search for “GRM” and “CAP RATE”.
Your deal has a GRM of 7 which is a little high for comfort. Positive cash flow usually begins at 6 to 6.5 and below.
You would have to get some comparables and listings and analyse them to see what the typical GRM is for your area.
I would like to see a price of $469,080 or less for that building.
Some great advice please - Posted by Cory
Posted by Cory on July 07, 2003 at 11:34:08:
Hi all,
After all the reading I have read at this website I did my first deal bought a house low sold high profit $35,000.00 owend it a total of four days…NICE…anyways I am looking at a 12 unit apartment building Grossed $78,180.00 last year he wants $550,000.00 for the complex I will have the specs tommorow how does this look so far I no you will need more info I will have it later just curious so put this up.
Thank you for all your help
CJ
Re: Some great advice please - Posted by Eric C
Posted by Eric C on July 16, 2003 at 16:32:54:
Hi Cory -
No need to run off to the main board for information on cap rates – they’re discussed here far more often and in greater detail.
Here’s a link to a recent post by Ray Alcorn on the subject:
http://www.real-estate-online.com/commercial-real-estate/wwwboard5/messages/9317.html
If you’ll also take a look at Ray’s article on due diligence, I guarantee you won’t be sorry.
Take care,
Eric C