Cashflow statements on performing properties
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!
Originally posted by @Danny Day:
Originally posted by @Nick B.:Maintenance goes into expenses. It is not a part of GPR.
What is "less lease commission"?
Typically this is 100% the first months rent in my market area, paid to the leasing agent.
Then it is better to put it under "Management".BTW, if you do that you'll realize that PM costs you 20% of your gross rent. Not good. It should not be more than 10% on the small stuff.
Here's a good start on capital reserves.
