6 Units

[Daniel H.]

What do you guys think? Two 3-family apartment buildings on one lot.

Purchase price $300,000.

Gross rent:$4,800/mo - $57,600/yr

Cleaning and maint: $1,200/yr

Insurance: $3,400/yr

Repairs: $1,200/yr

Taxes:$6,000/yr

Utilities: $5,000/yr

Pest control: $1,200/yr

Total expenses $18,000/yr

NOI: $34,992

Mortgage: 6%, 20yr amortization commercial mortgage

$1,605/mo $19,258/yr

Cash flow: $15,734/yr

[Roy N.]

@Daniel H.

Assuming your listed expenses are accurate, you need to consider allowances for vacancy, maintenance/CAPex, & property management.

Income:

Scheduled rent: 57,600

Vacancy (8.33 - 10%): 5,760

----------------

Gross income: 51,840

Expenses:

Identified Expenses: 18,000

Maintenance/CAPex: 3,984 (10% of gross - 1200 already in your figures)

Property Management: 4,147 (8% of gross)

-------------------

Operating expenses: 26,131

NOI: 25,709 (CAP: 8.57% at current ask)

Debt Service: 19,258

CFBT: 6,451 (537.58/month, 89.59/door/month)

Not a screaming deal at <$100/door/month cash-flow before taxes.