My first large multi-family. I am ready?
I am interested and I have signed the initial paperwork for my first (relatively) Large Multi-family. I own 4 homes outright and I have bought them on as renovations that have required several hours of my time and effort and capital to rehab. I truly enjoy rehabbing but I am getting to the point that I have very little time. I want to run through the numbers and please let me know your input on the investment. Thank you so very much. Here they are!
16 Unit Apartment Complex
Price: 455,000
Average Income (last four years): 88,400 ( I hope that I can get this up to 100,000 by managing better!)
Vacancy: 12.5% 14/16
RE Property Taxes: 17395
Property Insurance: 3500
General Maintenance: 1800
Repairs (average past 4 years): 2700
Management: 9100. (I think I could get this down to $4550)
Advertising: 250
Appliances: 1000
Lawn and Grounds: 1800
Miscellaneous: 500
The other questions about this property that I have concerns about are that there are repairs that need to be done and I estimate the repairs to be in the range of $50000. I do not think that this area is an area that will appreciate as the area has not seen an increase in population in the past 10 years. It has not declined but appreciation is something that I can not factor into the equation. Thanks for any input and any further suggestions in this matter.