Updated over 10 years ago on . Most recent reply
Deal analysis : funky 5 unit
I have an accepted offer on a funky 5 unit. 1 SFR and a 4 studio apartment building, non-conforming lot, grandfathered in. Fully rented right now. I tried to be as conservative with the numbers as possible.
Price $105,000
rents - 2450 gross.
vacancy 15% - 2082
utilities - 600
maintenence @3%/year - 262
prop tax - 100
insurance - 75
prop management - 166
landscaping - 80
NOI - 848
I have access to flexible non-traditional funding, which I think has been an issue for this property. Sort of a weird property, needs commercial financing, but very small loan (so high costs comparatively), plus non-conforming, so appraisers won't give value all the properties.
Units are not individually metered for any of the utilities, which I am going to look into, the water bills are through the roof right now.
Seeing the property tomorrow.