Three story apartment complex, Built: 1970
Number of Units: 29
Gross SF: 23,184 SF
Average SF: 653 SF
Net Leasable SF: 18,989 SF
Roof: Slight pitch asphalt shingle
HVAC: Forced hot air, gas furnace/central AC
Neighborhood Class B
Properties Class B-
Rental Unit Income $212,911
Effective Gross Income $195,302
Other Income $4,192
RUBS Bill Back $2,379
Total Other Income $9,730
Gross Operating Income $205,031
Management $10,252 (should be $21,291 for 10%)
Office Supplies $239
Employee Benefits $0
Legal/Credit Reports $1,078
Landscaping/Snow Removal $3,730
Repairs/Supplies/Maintenance $19,073 (should be $21,291 for 10%)
RUBS Utilities (Water,Trash, Pest) $18,451
House Gas/Electric $1,944
Real Estate Taxes $21,276 (should be $36,000)
Insurance $4,400 (should be $8,400)
TOTAL EXPENSES $92,192 (should be $125,109)
NOI $205,031 - $125,109 = $79,922
$79,922/0.08 (cap rate) = $999025
I did change some number for management, insurance, repair and maintenance. Any advice would be helpful.
Do Ratio Utility Billing System risky for new owner?
Listing Price 1.4M
1M is a good deal???
How about 1.1M???
This is your first deal?
We like to see CAP 8%+, Cash on cash 12%+ and Debt coverage ration 1.6%+
welcome to the site.
yes i just know about how to calculate value base on the NOI/Cap Rate. Any suggestion maybe i should not deal with more than 10 units??
I did not calculate the debt ratio, but 1.0M is 8% and CoC is 12%-13%.
So if more than 1.0M is not a good deal??
I looked at couple deal and really nervous about the rent roll with most tenants lease expire.
Is it a red flag if the owner didn't sign lease with tenants?
Can you trust the properties management company?
I also nervous about commercial loan, i have to refinance 5 years later.
what if the interest rate going up and the property value going down??
What if i the bank not qualify for me to refinance?
How much money should i preserve for emergency?
Join the Largest Real Estate Investing Community
Basic membership is free, forever.