12 Unit Capex and other questions
I've been building a spreadsheet that I can use to evaluate properties. I didn't see J Scott's SFH spreadsheet until after I started, but I usually like to build my own anyways. But down to my details/questions.
I'm looking at/trying to evaluate a 12 unit complex in Houston (3 4-plex buildings). The cost is $375k and the rent they say they are getting is $450/month/unit. Based on the area $450 seems reasonable and that's what I was using to take a look at it. When using the 50% rule as a quick evaluation the property seems ok. I haven't looked at the property yet so I don't know anything that would make this look worse than the 50% rule. However when I plug my numbers in the cash flow looks negative. I'm pretty sure I'm overestimating one/all of the following items and that's what is causing my spreadsheet to look so dismal.
Insurance ($350/unit/year)
Water/sewer ($40/unit/month)
Maintenance ($40/unit/month)
Capex ($563 total/month - breakdown is below).
I posted a picture of my spreadsheet how it currently is with my concerns highlighted in red. Feel free to point out errors anywhere in the sheet though. I can't figure out how to attach it otherwise I would.
Thanks for any insight you can give,
Zach