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What makes that investment a good deal is a question that really starts with what you are seeking when you invest in an apartment complex. Is this for long term? Are you seeking monthly cash flow? What are you happy making on your money on an annual basis? As John mentioned, you need to be able to have contingency money for repairs, taxes, ongoing maintenance and of course vacancies. You want to determine your CAP rate and that will give you an idea of your ROI. You’ll need the current owners tax rolls, other income (like possibly laundry), expenses and also you need to know how long the current leases are and are they at market rent or below. If they are below and the lease are up soon, that could give you an opportunity to raise rents and therefore increase your return. To determine the cap rate calculate the yearly gross income of the investment property. The gross income of a piece of investment property will mainly be in terms of rent rolls. Subtract the operating expenses associated with the property from the gross income and then divide the net income by the property’s purchase price.