Looking to run the numbers on a multi family property using the BP calculator. Are there any videos showing how to do this? I have seen videos on SFH but none on multi family
It's pretty self explanatory. The only number you won't be able to pull from somewhere is the homeowner's insurance. A lender friend of mine (here in Vegas) tells me they calculate by multiplying the purchase price by .0033 to get a fairly close estimate of the yearly premium rate. As for the vacancy, maintenance, cap-x, and management costs, I use 8%, 5%, 5%, and 8%. 8% vacancy = 30 days. Homes in Vegas are not all that old and most have been remodeled (or will be before they are leased) so 5% maintenance works. 5% for bigger items (roof, A/C, water heater, etc.) is just an estimate. It does work out fairly well for an estimate but should be adjusted once the usable life of these items has been calculated. (Example, you know a roof is good for 25 years and costs $25,000 to replace, so you should budget $1,000/year of your rental income towards the roof, A/C, XXX, whatever.) Finally, 8% management fee. I know 10% is most prominent but here in Vegas we can find a couple of PMs for an 8% fee. Hope that helps!
You will also need to know how much each unit can rent for. You can do this by looking up recently leased properties that are similar to the one you are looking into, in the same location. If you were in Nevada, I could double check your numbers for you. I have MLS access but only in the state of Nevada.