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Ayodeji Kuponiyi
  • Investor
  • King of Prussia, PA
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​Transition from Duplex to 5-20 Units

Ayodeji Kuponiyi
  • Investor
  • King of Prussia, PA
Posted Apr 27 2015, 06:44

I recently finished reading Ken McElroy’s The ABC’s of Real Estate Investing and have decided that my next investment purchase will be a commercial property specifically a 5-20 unit multifamily. Initially I considered purchasing a turnkey triplex or fourplex, however I see small apartment building as a way of reaching my goal of making over $5000.00 per month in cash flow. I understand the idea of analyzing a small apartment building however I find myself stuck on the specific numbers when analyzing and crunching the numbers. I can easily get the rent that each unit is paying however knowing the numbers for expenses is something I wouldn’t know unless I get the information from the owner. I could try to estimate and guess but I would rather have the actual numbers.

Currently, I’m prepping myself on analyzing deals around my area. I would love to get the numbers but I feel unless I have the money to purchase the property I should wait before asking an owner how much he/she pays for expenses and how much income is received from rent.

What are your thoughts fellow BPers? Should I ask anyways? Should I wait until I have the money? These small apartments are not listed on the MLS. My apologies in advance if a similar post with my question has been posted before and some of you have already posted an answer/solution to this.

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