If you have all these numbers I would encourage you to finish up the math for yourself, then post the entire analysis so others can look at your completed work. So take this all the way to completion.
Go ahead an calculate the percentages for vacancy (10%), maintenance (5-10%), cash flow, CAP rate, and ROI percentage.
This way we can not only look at the deal for you but also help check and grow your own ability to fully analyze a deal.
If you have all these numbers I would encourage you to finish up the math for yourself, then post the entire analysis so others can look at your completed work. So take this all the way to completion.
Go ahead an calculate the percentages for vacancy (10%), maintenance (5-10%), cash flow, CAP rate, and ROI percentage.
This way we can not only look at the deal for you but also help check and grow your own ability to fully analyze a deal.
Flipper/Rehabber · Mechanicsburg, PA · Member since 2013 · 189 posts · 84 votes
10y
What type of financing will you be using? What are the terms?
I'm concerned your maintenance number may be a little low as that's a very old building and you will have lawn/snow costs for a multi unit.
Investor · Dillsburg, PA · Member since 2013 · 48 posts · 17 votes
10y
@Ethel Weaver I do a lot of work and manage a bunch of properties in Middletown, I know the property you're talking about, it's currently under contract, did you buy it?
I'll reach out to you off-line to discuss more, would love to work with you. I currently work with about 10 other investors buying and/or managing properties.
In my opinion, this one would be a decent deal if you could get the rent up to $550/unit. I haven't seen the inside, but I manage a couple other properties in Middletown and the lowest I get for a 1 BR is $525 and it's pretty small. I would think the rents are under market. This property you're describing is just up the street of one that I manage.