6 units, (2) 2BR-1Bath) and (4) (1BR-1Bath) . . . Could potentially be a 4 unit with substantial reconfiguration.
@Robert Shepard Have you double checked your Fixed and Variable expenses? Aside from the vacancy (which seems low), everything else seems very high. For example, $1,500/month for trash pickup?
What do you suggest for the vacancy? Also, that makes sense, I need to include some estimated cost for trash, cleaning of common spaces, landscaping, and parking pad repairs.
What do you suggest for the vacancy? Also, that makes sense, I need to include some estimated cost for trash, cleaning of common spaces, landscaping, and parking pad repairs.
With my CFO clients, I will use either 5% or 8% for vacancy, based on the number the lender will use in their underwriting. As for the rest of the operating costs, I look at it mostly as a whole rather than individual expenses. But if I were to break it down, I usually see taxes and insurance are up to 20% of the Effective Gross Rent (Rent less vacancy cost). And the rest of the operating expenses (R&M, Util, Mgmt Fees, etc.) are usually between 10%-15% of the EGR (so a total of 30%-35% the EGR). In some areas of high taxes or insurance costs (like New Orleans, you may need to go to 40% of EGR). Hope that helps.