Madison Suburb Multifamily Deal Analysis
Hey All -
I'm trying to analyze my first "off-MLS" deal and would love your thoughts. What am I not taking into account and what assumptions would you change? I'm expecting to do a traditional 20% down mortgage (and looking to do seller financing for the 20% down) but am open to other options including a VA loan or a more "creative" option.
- The seller has 2 duplexes that appear identical in Columbia county between Madison and Lake Wisconsin.
- The pro forma rent is listed for $975 / month (estimated from gross income).
- Each unit is 3BR / 2BA,1200 square feet. Each unit has it's own 2 car garage.
- Taxes in 2015 were $5500.
- All utilities are paid by tenants.
- The seller has up to 10 more units available in nearby towns between Madison and Lake Wisconsin including an 8-unit and another 2-unit. Maybe a better deal could be made by buying more units from the same seller?
- Each duplex is offered at $225,000. I ran the BP Rental Calculator with the assumptions:
Vacancy: 10%
Repairs & Maintenance: 10%
Capital Expenditures: 10%
Property Management Fee: 10%
Annual Income / PV / Expenses Growth: 0%
Sales Expenses: 0%
Having never bought a unit, I could definitely use any insights into the assumptions for this area. What would you change? Thanks in advance!