Apartment #1 Update
April 27th, 2008 by KenricIt’s been two months since my last update on Apartment #1. The last time I wrote about Apartment 1 I said that pro-forma revenue is around $82,000/mo for the complex and we are at about $66,000/mo. In March we dropped down to $62,000/mo in rental income.
Although vacancy is actually lower, we had greater rent concessions and bad debt which amounted to the $4,000 drop in income.
The renovations are almost complete.
Overall, we are slightly behind our Year 1 goals.
Posted in Apartments | 
Stumble it!
Ummmmm…and you want to buy ANOTHER one of these?
What does partnership management say about this? Are the rent concessions necessary because the renovations are disruptive? Is the bad debt expense because prior management did not evict the deadbeats? When do they expect the “pro forma” numbers to be achieved?
If the breathtakingly skimpy capitalization rate was based on the pro forma, what is the actual first year capitalization rate, and when will you see any cash flow from this investment?
Overall, it looks like you got a much better return in the last year playing poker….
By Another Investor on Apr 28, 2008