Question
You are buying an investment property. It is November 15th. You get the following information from the seller: He says he gets rent of $1,100
You are buying an investment property. It is November 15th. You get the following information from the seller: He says he gets rent of $1,100 per month. The collected rent to date shows to be $11,800. Property tax was $900, and Insurance is $1,100 annually. Utilities expense is $400 to date. Annual interest expense is $3,100. Payment is $700/month. Annual depreciation is $1,673. He replaced HVAC for $1,250.00. Maintenance expenses have been $500.00 so far this year.
You have an investor that is looking for an investment that will provide a 10 cap rate. What can he pay for this investment?
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