6 Unit - 5 apts with 1 storefront
Good Afternoon!
I have experience with 2-4 unit residential but working on transitioning to focus my investing in bigger unit buildings and I have a few questions on a property that came across recently. It's only a 6 unit, with 4 1br units, 1 2br and the storefront.
Gross rent is 48,600 (all units are well under mkt as previous owner hadn't raised in 15yrs. Market Rent estimate is 60,000)
Expenses: 26,293
NI: 22,307
Asking price is 360,000.
1. Expenses include electric and gas as prev landlord paid for all utils. There are 7 sep electrical meters but only 3 gas meters so I'm assuming it wouldn't be an issue to have all start paying for their own electric. With only 3 gas meters I'm assuming that would be a challenge. Any ideas here?
2. I estimated 4,000 for prop mgmt expense even though i would self manage and used 1,500/mo as maintenence and repair expense. Is that a fair estimate?
3. There is also a 1/2 lot that is attached that is used for parking but tenants currently not charged for that.
4. Property is owned in estate of landlord who passed so children selling it and have deadline of next April before they finalize the estate so there is some motivation there.
5. Property is owned free and clear.
I'm not an estate attorney or tax accountant obviously but is it a tax benefit that the heirs sell the property before the estate is settled? If so, would owner financing be a benefit or something worth offering?
Thanks for all the input as this is a new realm for me!
Travis