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.