Max Offer on Triplex

[Mark S.]

Debating whether I should make an offer on this triplex:

Unit A: 2BR/1BA - rents for $700/mo
Unit B: 1BR/1BA - rents for $600/mo
Unit C: 1BR/1BA - rents for $500/mo
Total Monthly Rental Income: $1,800/mo

Current Owner Pays: water (one meter), electric (separate meters), gas (separate meters).  I am in the process of finding out the averages for this.  These rents are higher than market, but b/c current owner pays utilities, people are willing to pay it.

EXPENSES
Property Management (@10%): $180/mo
Taxes: $113/mo (based on higher, PVA assessed value)
Insurance (guess, in process of obtaining): $150/mo
Maintenance (@10%): $180/mo
Cap-Ex (@10%): $180/mo
Utilities (@$150/unit): $450/mo (this is a total guess)
Total Monthly Expenses: $1,253/mo

NOI: $547/mo

I would be financing with 25% down at an assumed 30-year fixed interest rate of 5.0%. You would then have to subtract debt service from the NOI to get the estimated cash flow.

What's your max offer on this property?

When I get the average utilities figures, I will update this thread.