Help analyzing my FIRST deal

6 Replies

Hi, everyone! I'm looking to purchase a 6 unit multifamily property to begin my real estate investing career but I'm getting cold feet. I've analyzed and reanalyzed but I want to throw the monthly income/expenses out there for a few seasoned multifamily investors to analyze for comparison. Everyone seems to factor in vacancy, repairs and CapEx differently so using your standards, what purchase price would make this a good deal for you?

Asking Price: $169,900

Current Rental Income: $2990

Property Taxes: $278

Insurance: $164

Landlord Paid Utilities/Trash: $416

Thank you for your time and expertise!

I do! I actually asked for the last 2 years of P&L statements and essentially received the last 12 months of income/expenses written on a napkin. Rents have been stable. They claim $700 for 2 new hot water heaters over the past year and that’s it.

Originally posted by @Ashley B. :

I do! I actually asked for the last 2 years of P&L statements and essentially received the last 12 months of income/expenses written on a napkin. Rents have been stable. They claim $700 for 2 new hot water heaters over the past year and that’s it.

$700 for 2 new hot water heaters? Is that per unit or both? That's a pretty optomistic figure in my opinion. 

@Nathan Kyle Taufer $700 for both and yes, I agree with you. I know they aren't giving me accurate repair expenses and I assume it's because they are terrible at bookkeeping. It's very apparent they don't keep records so I'm trying to work off what I'm getting. The current owners have only had the building for 2.5 years. They live an hour away, self manage it and are too busy with their jobs to do so. I figured 5% for maintenance and 8% for CapEx in my analysis. The building is older but I will be renovating each unit when the tenants move out.