2, 50, and 70% rules
Hello all,
I am reading The Ultimate Beginner's Guide to Real Estate Investing. My question to you all is: How do you calculator for multifamily units? I'm practicing using the rules and here are some details.
- Includes: Land & Building
- Owner Pays: Sewer
- Owner Pays: Water
- Tenant Pays: Electric
- Tenant Pays: Gas
- # of Buildings: 6
- # 1 Bedroom Units: 6
- # 1 Bedroom Baths: 1
- 1 Bedroom Units Avg SqFt: 600
- # 2 Bedroom Units: 5
- # 2 Bedroom Baths: 1
- 2 Bedroom Units Avg SqFt: 850
- Income & Expenses Gross Annual Sch Inc: $78600
- Income & Expenses Adjusted Gross Inc: 74670.00
- Income & Expenses Operating Exp: $31264
- Income & Expenses Net Operating Income: $43406
- Number of Units: 11
- 1 Bedroom Units Average Rent: 550.00
- 2 Bedroom Units Average Rent: 650.00
- Total Monthly Rental Income: 6550.00
- Vacancy Allowance: 0.05
- Annual Water/Sewer Expenses: 12000
- Annual Management Expenses: 5226
- Annual Maintenance Expenses: 6000
- Annual Landscape Expenses: 3600
- Annual Insurance Expenses: 2750