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Dalton Mongold
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What’s One Expense New Multifamily Investors Commonly Underestimate?

Dalton Mongold
Posted

The more multifamily deals I look at, the more I realize how easy it is for numbers to change quickly depending on expenses.

Curious from those with experience in the space:

What’s one expense you think newer multifamily investors tend to underestimate the most?

• maintenance
• insurance
• taxes
• vacancy
• capital expenditures
• property management
• renovations
• something else?

Seems like a lot of deals can look great upfront until the true operating costs start showing up.

  • Dalton Mongold
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    G. Brian Davis
    • Investor
    • Hatboro, PA
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    G. Brian Davis
    • Investor
    • Hatboro, PA
    Replied

    From what we've seen reviewing deals in my co investing club, newer investors often underestimate the combination of CapEx, insurance, and timeline risk together. A renovation that takes longer than expected while insurance, taxes, and interest costs keep running can change a deal very quickly.

  • G. Brian Davis
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