Triplex in NY with section 8 tenants already in situ

[Helene Goodworth]

Please tell me this is as good as I think it is. I feel like I am missing something. I don't have financing yet but will be getting a DSCR loan for it. List price is $675000 but he said that they would accept an offer. Also, one of the homes can be raised from $1,850 to $2,300 when new owner takes possession.

3 Family House	675000
3 3 Bedroom Apartments
Apartment 1	2,205.00$
Apartment 2 HUD	2,300.00$
Apartment 3 HUD	1,850.00$
Total Rent Expected	6,355.00$
	76,260.00$
Expenses
School Tax 23-24	3,460.68$
Town and County 2024	2,222.30$
Insurance	3,035.51$
Lawn & Plow	2,400.00$
Repairs and Maintenance Furnaces	1,231.20$
Total known expenses	12,349.69$
NOI	63,910.31$
Cap Rate	9.47%

[Greg Scott]

My reactions:

- There is no allowance for bad debt or vacancy, which will happen at some point

- Repairs & maintenance are VERY low.  In the apartment industry, typically $250-300 per unit per month is held by the banks in escrow, but R&M can be much higher

- Utilities - Is there any common-area lighting?   How is water split?  Surely there is some expense for the landscaping water that is not covered by the residents.

- Of course, this assumes you are managing the property with free labor.  It is always worth looking at returns if you had to hire a PM.  Take 10% off your revenue for that.