use realistic expenses .. plus usually a lot of deferred maintenance (roof, boiler, ugly suites, hallways carpets, windows ...) .. add those to price and what looks like 18% on paper is perhaps only 6 or 8 or 10% CAP rate in the real world. It may still make sense .. or it may not .. check it out some more: city, sub-location and asset .. all may or may not make sense !
Send me the loopnet link privately (or publicly here) if you wish and I`ll give you an opinion !!
We bought a building in Detroit 3 years ago because it was cheap .. only 13/door ! We could not cash-flow it with no mortgage it .. and sold it for 3/door a painful year and a half later !! I made the big mistake of not going myself and relying on my (now departed) partner and an appraisal 40% above our purchase price. Big mistake. Many areas in the US are not where the average human wishes to live and the average investor wishes to build equity.
Buffalo might be similar !!
