Vermont Multifamily Analysis Help

[Micah Rome]

I did a back of the envelope analysis for this 3 unit plus general store building and got the following numbers which seem pretty promising.  What other information should I find out or confirm before making an offer?

Purchase	Cash2Close	Monthly Rent	Prop Tax	Insurance	PM	Mortgage	HOA	Vacancy	Repairs	Total Expenses	Cash Flow	Cap Rate	Cash on Cash
198,000	49500	2900	414	200	290	732	0	290	145	2071	829	9.46%	20.10%

https://heneyrealtors.com/listing/4734232/4520-vt-14-calais-vt-05650/

Thanks

[Samantha Hiscock]

Well.. hes not the Mayor anymore, but he does own quite a bit. I know him well.  I've got a handful of properties in Barre also. 

Your projected rents are higher than stated, why? I definitely think your repair numbers seem a little low, that place is ROUGH! You also have nothing allocated for heat or electric, which is completely unrealistic to expect that the tenants are responsible for utilities just because they are separated. This local market pretty much has heat included in a multi of that size. What is the snow removal plan?  What is your managnent plan? You're 6 hours away, have you lined anything up yet? It may be harder than you expect, as that's a dinky little town and there isnt really a property management company that primarily serves that area. Do you have ANY knowledge of Vermont landlord tenant laws? I just purchased a property with an active eviction- 11 months through the court and 5 prior to that. 16 months with zero rental income and now about $8k in repairs to re-rent. That's pretty typical if you need to evict. 

I am not saying it's not a worthy investment, I just think that if you dont have serious knowledge of the area and typical rental practices it isnt a fair assessment to just put some numbers into an online calculator and expect that you're going to be getting the cashflow you anticipated.