Buy and Hold Multi Apartment Deal Analysis

1 Reply

What do you think about this deal???

what is this properties value 1.5M???

The properties is class C and neighborhood class B

Total building square footage: 48,513 sq ft,  built  in 1947

Listing Price $1,800,582.5 0.095


OPERATE INCOME Annual %
RENTAL UNIT INCOME $363,504 0.05
Vacancy 5% $18,175  



GROSS OPERATING INCOME $345,329  
 
OPERATING EXPENSES  
Advertisin $272  
Trash Removal $1,320  
Management 8% $29,080.32 0.08



Supply $16,611  


 
Landscaping/Snow Removal $1,866  

 
Replace/Repairs/Supplies/Maintenance % $30,825.14 0.0848
Water/Sewer $19,214  
Utility House Gas/Electric $10,924  
Real Estate Taxes $54,100  
Insurance $10,061  



TOTAL EXPENSES $174,273  
NET OPERATING INCOME $171,055  
LOAN WITH 20% DOWN $360,000 $1,800,000
DEBT SERVICE (1) ($97,524.99) 0.2
DSCR $1.75  
CASH FLOW $73,531  
CASH ON CASH RETURN 20%  

I add 5% for Capital expenditure

and vacancy rate to 10%, now the Price about 1.5M

VALUE $1,494,473.9 0.095



OPERATE INCOME Annual %
RENTAL UNIT INCOME $363,504 0.08
Vacancy 10% $29,080  



GROSS OPERATING INCOME $334,424  
 
OPERATING EXPENSES  
Advertising $272  
Trash Removal $1,320  
Management 8% $29,080.32 0.08



Supply $16,611  



Landscaping/Snow Removal $1,866  
Cleaning/Maintenance  
Repairs/Supplies/Maintenance % $30,825.14 0.0848
Water/Sewer $19,214  
Utility House Gas/Electric $10,924  
Real Estate Taxes $54,100  
Insurance $10,061  
Reserves/Replacement 5% $18,175 0.05
TOTAL EXPENSES $192,449  
NET OPERATING INCOME $141,975  
LOAN WITH 20% DOWN $300,000 $1,500,000
DEBT SERVICE (1) ($81,270.82) 0.2
DSCR $1.75  
CASH FLOW $60,705  
CASH ON CASH RETURN 20%  

Thanks

Long Khang

What do you think about this deal???

what is this properties value 1.5M???

The properties is class C and neighborhood class B

Total building square footage: 48,513 sq ft, built in 1947

Listing Price $1,800,582.5 0.095

OPERATE INCOME RENTAL UNIT INCOME $363,504

 Vacancy 5% $18,175
GROSS OPERATING INCOME $345,329 

OPERATING EXPENSES

Advertisin $272

Trash Removal $1,320

Management 8% $29,080.32

Supply $16,611
Landscaping/Snow Removal $1,866
Replace/Repairs/Supplies/Maintenance  $30,825.14

0.0848 Water/Sewer $19,214

Utility House Gas/Electric $10,924

Real Estate Taxes $54,100

Insurance $10,061


TOTAL EXPENSES $174,273

NET OPERATING INCOME $171,055

LOAN WITH 20% DOWN $360,000

DEBT SERVICE  ($97,524.99)

DSCR $1.75

CASH FLOW $73,531

CASH ON CASH RETURN 20%

I add 5% for Capital expenditure

and vacancy rate to 10%, now the Price about 1.5M

VALUE $1,494,473.9 0.095
OPERATE INCOME 

RENTAL UNIT INCOME $363,504

Vacancy 10% $29,080 

GROSS OPERATING INCOME$334,424

OPERATING EXPENSES

Advertising $272

Trash Removal $1,320

Management 8% $29,080.32

Supply $16,611
Landscaping/Snow Removal $1,866

Repairs/Supplies/Maintenance  $30,825.14

Water/Sewer $19,214

Utility House Gas/Electric $10,924

Real Estate Taxes $54,100

Insurance $10,061

Reserves/Replacement 5% $18,175

TOTAL EXPENSES $192,449

NET OPERATING INCOME $141,975

LOAN WITH 20% DOWN $300,000

DEBT SERVICE (1) ($81,270.82)

DSCR $1.75 CASH FLOW $60,705

CASH ON CASH RETURN 20%

Thanks

Long Khang