Ok here's the deal. Can anyone help me analyze this property? TY!

12 Replies

It's priced a bit low for the income generated since it's at 6 units. 

Also looks like your paying utilities too. 

How long are leases in place?

Separate meters or chargebacks usual in the area?

It's sitting at a 5ish GRM, 9.7 cap (assuming 50% expenses)

What's the area like?

Are the rents at market?

Average Vacancy rates for your area?

  

run the numbers I think it's a good deal but could be wrong because I don't know the area vac rate cap rate .. Cashflow is attractive though and great price it's a bit older though is the property in good standing also 

my issue is the expenses. How can I find the actual utility expenses so I can add to my analysis? 

@Brandon Turner can u help me analyze this one? Would 50% rule help on this deal? Seems there's a lot of these deals in New Britain, CT. 

Thank you

Tony V 

Shows good instincts to worry about the utility cost... If you're in the HVAC business I'm sure you know it's not cheap to heat a house built in 1890 in Connecticut. You can request the actual utility cost from the seller's agent or ask your agent to get it.

@Tony Velez If you work with a good realtor that knows new britain they will be able to give you an idea of utility costs.

@Jeff Kehl that why I'm thinking not even close to a good deal 

Yeah - @Brandon Turner I'd love help with this one as well. No idea where to even begin...

Well, I might call the utility companies and see what they say. Or, I might ask to see statements...

Or, which is most likely, I might just say - this looks like Waldo if I ever saw one, and there's no chance in hell I'm paying utilities on 6 doors...

Hope this helps, Tony. But, just to be sure, we should still ask Brandon :)

Originally posted by @Tony Velez :

@Ben Leybovich I'm going to walk on this one. 

 Good for you :)

Being a 6-unit, you're definitely going to want to make sure this property is up to code or you could get hit with a monster expense when the Fire Marshall walks through.  Some signs its not to code would be wood doors to units, fire-rated drywall not installed on basement ceilings, or units without two egresses.  The price isn't that appealing considering what can be purchased in the cities.  Of course you also want to visit the building and zoning departments to confirm legal use (do not go by assessor card).

Not sure if this is relevant here but what about the 1Br and the studio apartments?  

as I understand it they are the units that turn over quickly and tend to have less overall value.

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