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You are considering buying a 90-unit apartment building in Miami. You have the finances and are...

You are considering buying a 90-unit apartment building in Miami. You have the finances and are looking for an after-tax return on your investment of 8% per year. What would you like to know about the building and apartments before you decide on a price you are willing to pay? List all relevant information you will need for your decision.

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Answer #1

The information I would need to make a decison is mentioned below:

- The property rates in the area in which the building is located.

- The selling price or rent each unit of the apartment building is expected to get.

- Whether the rent received will constitute 8% after tax return on investment.

- The tax rates which are currently in place in Miami.

- The legal obligation and fees required to purchase the bulding and register it.

- The source of financing( irrelevant if the capital is already there)

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