[Calc Review] Help me analyze this deal
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@Mautrice Walter did you run maintenance and capex budgets to get your numbers or just a percentage. Is it a multi or sfh. Size matters. Cost to maintain a 500 sf studio is different from 3/2 bedroom home. Did you confirm with a property manager that they would do a flat 7%. Most are 10-12% with rentup fees. Is everything separately metered. Any lawncare?
@Tim Herman I ram budgets to get my numbers, it's a 10 unit multifamily in Birmngham, Alabama. I haven't confirmed the property management fee of 7%.
Everything is separately metered, I will check on the lawn care, but would that be covered in my maintenance fees.
@Mautrice Walter when I run a maintenance budget it usually comes out around $50 per unit. Grounds keeping would be separate expense. Unless this is a newer building most multi have only 1 water and sewer line. I don't know the size of the units but if you have 1000 sf of flooring per unit you will be short on your capex. My area it $6 sf to replace. Go to your favorite flooring store and ask the commercial warranty. Most will be 10 years or less. 10 units at 1000sf= 10000sf*$6 sf=$60000/120 months lifespan=$500 per month for 1 item in a capex budget. Garbage seems low for a dumpster for a multi.
Tim, thanks for the feedback, would love to send you another deal I am working on in Oklahoma
@Mautrice Walter What are you looking at in Ok?
@Lara White Hi Lara, I am looking at 9 properties in OKC, they are all mobile homes on land fence in with .5 acre each.
I see that you are experienced in RE investing and I would really like your opinion on a deal. Got a few minutes tomorrow evening or anytime at your leisure. Would love another set of eyes to look at this deal.
Sincerely,
Mautrice Walter