Expenses Per Unit in Denver

[Terrence W.]

Hi all,

I was looking for someone who has experience in the garden/walk-up level multifamily space in the Denver area. I'm looking to purchase a 10-20 unit class C building, but I'm having a difficult time estimating the costs per unit. It seems like the 50% rule is not as applicable when you have a high rent area such as Denver because the expenses are somewhat fixed while rents will float with the area. I was thinking somewhere along the lines of 4000-4500 per/unit depending on who covers utilities, but would appreciate someone with real numbers to provide some guidance. Thanks again in advance! 

[Scott Choppin]

@Terrence W. IREM has an annual income/expense survey of all major metro areas (IREM Annual Survey), it costs, but we have found it to be very valuable. The link is for 2015, but you can use the website to find the latest version. You can research by product type: garden style, podium, etc. We have found it to be very useful, as it is very specific to metro and product type, a good base. Then you can assess unusual characteristics of the property to adjust as needed. Thanks.