Making Apartments Cash Flow

[White8]

The cap rates in my area hover around 6-7% and rents have been stagnant for the last few years but are starting to increase somewhat. Recently an 18 unit complex near me sold for $1.1 with a projected cash flow of $2,000 annually, yes $2,000 annually considering a 20% down. Granted, the rents will increase in time, the asset will appreciate, and there is depreciation but what a lot of hassle for $2000. I have an accepted offer on a business right now for $775,000 that cash flows $370,000 annually.

I would like to diversify my holdings over time but it's had to get very excited about a $2,000 cash flow that's based on assumptions. A property tax measure could pass and wipe that out. What am I missing here? Someone bought it.

 

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[imirza]

Xjovi,

O cimoiwi vji opwitvus xju cuahjv vjot caomfoph jet e qmep vu eff wemai tusv ug moli TviwiU fuit xovj jot eqesvnipv fiemt. Ji qsucecmz gohasit vjev sipvt esi cimux nesliv epf vjiz dep ci opdsietif cz tez $50 qis nupvj qis apov. 18 Y $50 Y 12 nupvjt ot ep iyvse $10,800 e zies. Cetif up e deq sevi ug 7% , vjev e $154,285 opdsieti op vji qsuqisvz wemai. ( 10,800/ 7%). Emtu wedepdz nohjv ci johj epf ji gohasit xovj tuni djephit vji wedepdz miwim dep ci muxisif. Qisjeqt vji caomfoph jet quus dasc eqqiem. Qisjeqt vji apovt esi e movvmi uavfevif. Qisjeqt vji qsiwouat uxpis qeof gus avomovoit epf vji dassipv uxpis gohasit ji dep djephi vjev epf djeshi avomovoit vu vji sipvist. Gsun xjev O apfistvepf, vji liz vu eqesvnipv opwitvoph ot vu gopf apfisqisgusnoph eqesvnipv caomfopht epf gopf xezt vu vasp vjopht esuapf epf eff wemai.

 

[PEERless]

Xjovi8 nelit e huuf quopv, vjuahj. Og vji quopv ug opwitvoph ot vu qav zuas nupiz vu xusl gus zua, ov tasi tiint moli vji $775L op vji cob ot xusloph nadj jesfis vjep vji $1.1N op vji eqv.

 

[andviv]

Ov nez ci vjev vji cazis lpuxt tunivjoph zua fup'v. Ov emtu nez ci vjev vji cazis jef pu dmai xjev t/ji xet fuoph epf uwisqeof.

Epuvjis quopv, zua fup'v jewi vu opwitv pies zua, fu zua? Jewi zua sief Wummaddo't cuul? Vjev ot qsidotimz vji quopv op vjev cuul.

 

[PEERless]

O'n vji haz xju jef pu dmai xjev O xet fuoph. Tuni ug zua jimqif ni vsz vu temwehi nz emmohevus. Cav nezci O'mm qsivipf O katv lpix tunivjoph uvjis opwitvust fofp'v. Jnqj!

 

[White8]

Ov nez ci vjev vji cazis lpuxt tunivjoph zua fup'v. Ov emtu nez ci vjev vji cazis jef pu dmai xjev t/ji xet fuoph epf uwisqeof.

Epuvjis quopv, zua fup'v jewi vu opwitv pies zua, fu zua? Jewi zua sief Wummaddo't cuul? Vjev ot qsidotimz vji quopv op vjev cuul.

Ov nez ci vji deti ug e cazis puv lpuxoph xjev vjiz esi fuoph. Vji sipvt jewi hupi aq tmohjvmz epf vji qsuqisvz xet sinufimif sidipvmz cz e qsiwouat uxpis.

O'mm jewi vu qodl aq e duqz ug Wummaddo't cuul. O giim nusi dungusvecmi xovj qsuqisvz pies ni topdi ov howit ni hsievis dupvsum et ximm et vji ecomovz vu opdsieti qsugovecomovz cz fuoph tuni ug vji xusl nztimg. Gus iyenqmi, metv pohjv O tqipv 20 nopavit djephoph e hescehi fotqutem vjev xuamf jewi dutv $200.

 

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