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Multi-Family and Apartment Investing

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Brandon Singer
  • Investor
  • Winter Garden, FL
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14
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13 Unit Opportunity 1 block from the beach

Brandon Singer
  • Investor
  • Winter Garden, FL
Posted Aug 28 2016, 07:35

This will be my first multifamily investment. I am looking to be a buy & hold investor. I am in negotiations with the owner of a 13 unit apartment 1 block from the beach. The purchase price is $750k.

Gross Annual Rent is: $91,800

Expenses include: 

Property Taxes $6,300
Property Insurance $6,000
Water / Sewer / Trash $7,200
Advertising $0
Live in Manager Free Rent $8,400
5% Repairs / Reserves $4,590
5% Vacancy $4,590
Total $37,080

As you can see above, there is a live-in manage who takes care of everything from painting, re-tenanting, collecting rent, etc. The current owner has owned it for 12 years. 75% of the A/C units have been replaced in the last 3 years. New roof in 2013. 

I am in the process of getting financing from my credit union for $600k for 20yrs @ 4%.  I will fund the rest as a 20% down payment. 

Most of the tenants have been in place for 2+ years so there is very little vacancy even though I have accounted for it. 

What do you guys think about this? What am I missing?

What would you differently? 

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