Michael O. So “Current” is the T12 for 2017 or is “Current” an extrapolation based on a single static month? 5% vacancy is low but not unreasonable. I’d use 8% but that’s just me. The PM expense also looks a teenie bit low, I’d use 10% there but it’s a moot point if you have an 8% PM lined up. And insurance is going to drop by 25% next year? Why?
For what it’s worth, I’d never trust a listing broker to tell me if something was in the “path of progress”. I mean, really, do many of them say: “No, the path of progress is the other way and this will be less and less desirable every year for the next 30 years.”
And the obvious stuff like cap-ex is missing. When you’re dealing with commercial multi you will have some “constant” cap-ex expenses every year. Some unit (unless it’s a new build) will need new flooring, have an appliance die, need a new counter-top, etc. It’s helpful for older properties to look at (if possible) cap-ex expenses as it won’t change your NOI or cap-rate but will impact your cash-flow.