Getting real numbers for a multiplex

8 Replies

In August of the this year my business partner and I should have over 50k in cash, and would like to enter the real estate market with a good foundation and knowledge. It's a bit hard because when reading one book about SFH's it sounds good, and then we read about mult-family units and that sounds good.

But at this point I would like to know the true costs of owning a duplex, triplex, or perhaps a 4-8 unit multi-family property.

Zillow isn't the most accurate place and without current access to the MLS it's what I've been using. As an example I saw a 4 unit going for 225k on 33rd street which is 6bed, 4baths, 2,790sqft.

I don't know the neighborhood, but this is an example for numbers and not a property I'm about to make an offer on.

At 225k with 45k down over 30 years at a fixed 4.072 the mortgage is 867 per month

In addition to the mortgage there is insurance estimated at 67 per month, and tax at 152 per month.

For the majority of properties in Philly, does the landlord pay for water, trash, any other utilities?

Philadelphia has a use and occupancy tax? Can someone elaborate on this? 

Does anyone know of a reputable and good property manager? Also do property managers do just one property or are they more accustomed to managing properties in bulk

I'm sorry for all the questions but we live in Los Angeles and trying to analyze markets outside of California since the numbers seem a bit friendlier, and before we spend money on a mid-west or east coast trip.

 Any information is greatly appreciated. Thank you so much.

Hey @Jonathan Feliciano ! This property you mentioned, what block of 33rd is it on? I'm assuming you want to purchase within University City? 

As far as expenses go:

With 2-6 units the city will provide trash pick up for a flat rate of $300 per year. Single family homes are not required to pay for trash.  

With multifamily homes, the landlord typically pays water. With single families it's very common to have the tenants responsible for all utilities. 

Philadelphia imposes a rental license fee of $50 per unit, per year. In order to obtain a rental license, you will need to apply for a commercial activity license, which is now free. 

sorry, im on my phone. consider vacancies, maintenace, capex, management, utlities you pay, taxes (city, county, school...call the county assessor office). forget insurance, cleaning, turnover, advertising, lawn care, snow removal, rental license fees, occupancy fees, inspection fees, closing costs, you left knee cap! ( you are in Philly!)