Cashflow statements on performing properties

[Danny Day]

I am looking to start the search next year for my first multi-family property, and wanted to look at cashflow statements of those already running performing multi-family properties.

• What am I missing for fixed expenses?
• What am I missing for variable expenses?
• What do you estimate for monthly maintenance?
• What do you estimate for monthly vacancy?

My cashflow statement shows something like this:

INCOME

• Unit #1 - $800
• Unit #2 - $800
• Unit #3 - $800
• Unit #4 - $800

TOTAL INCOME: $3,200

EXPENSES

Reoccurring Expenses

• PI: -$922
• Taxes: -$760
• Insurance: -$125
• Property Management Fee: -$320

Total Reoccurring Expenses: -$2,128

Variable Expenses

• Property Maintenance: $0
• Vacancy: $0

Total Variable Expenses: $0

TOTAL EXPENSES: -$2,128

CASHFLOW: $1,072

Thanks in advance!

[Brad T.]

Off the top of my head, you are missing the below items.  Obviously, you need actuals once you find a property.

- Maint and Repair, 10% of income is a good starting point

- Vacancy and credit loss, if the property is run well, 5% is a good starting point

- Utilities

- Advertising

- Legal (evictions, lease advice)

- Tax prep

- Property management placement fees (usually 50-100% of one month's rent)