Average operating expenses fo multi family in Lincoln/Omaha Metro

[Michael Trueba]

BP Members- We are researching markets and have targeted a few to begin deep diving into for multi family property acquisition. We are targeting the B-C asset class with 5-25 units. The ideal property would have a value add component (big surprise I’m sure!). Anyhow, my question is an attempt to get a sense from some of you with existing properties in the Omaha/Lincoln, NE metro market of average expenses. In the Boise,ID metro we generall use 40% as a general quick analysis plug. 8% for property management, 5% for replacement reserves, 5% vacancy, etc. Do these general guidelines seem to hold true for the above mentioned market as well? Thanks for your help!

[Sam Grooms]

Don't use percentage guidelines. You need $ figures for most OpEx, with R&M adjusting with the age of the building, property taxes being specific for the county. Property management is the only one that's a percentage of rents. 

If you want average per unit OpEx for a specific area, you need to buy the IREM report. It will give you everything you're looking for.