16 Unit Evaluation - Cashflow w/ 100% financing?
BP Community,
I am seeking information and guidance from the wealth of experience we have available here. I am fairly new to the real estate investing game and am constantly trying to learn more. Here is where I need some input.
I have come across a pair of 8-plex’s that, on the surface, appear like a good opportunity. I am here to reach out in hopes of gathering more information, input, and advice when evaluating these units. I believe I have covered the basics in my initial evaluation but want to make sure I look at everything that’s pertinent for this type of property. I could also use direction on the financing side since this will have to be a commercial loan. I think that the cash flow may still work with a commercial loan and a second to take it to 100% (if it’s even possible).
The basic property information is below.
16 units (2br/1ba) - $758,000 ($379k x 2) (List price)
Rent - $9,600-$10,400 ($600-650 estimated based on comps)
Tax - <$2,000/yr
Utilities – Appear to be metered separately based on pictures
Lawn Maint. - $50/mo (little yard/landscaping)
Insurance - ??? Calculated based on $600/month (I assume this is very high)
Vacancy – 5%
Repairs/Maint – 10%
Cap. Ex. – 10%
Mgt. Fee – 10%
The property was purchased in 2015 for $150k and appears to have been renovated recently. There are only pictures of one unit and the floors, counters, etc are updated.
What are some things I may be overlooking or other areas where I might be surprised? Does anyone have any advice on financing for something like this?
I look forward to the input!
Regards,
Scott Hensley