Mid-west 11-Unit Offer Price Suggestion
Happy Thanksgiving!
I've had good luck when asking my first question on a deal a week ago, so here I am again...:-)
This is a 11-unit multifamily in a quiet residential area, across the street is a cemetery. 9 are 1 bed 1 bath (8 is currently rented with $550/month), 2 needs to be converted to 1 bed 1 bath (not ready for rent yet).
Per seller, it's very easy to rent because there is a college 5 mins drive away and some other employers in the neighborhood. Annual net operating income is around $42,000 (seller is managing the property himself so no PM cost). Owner is responsible for hot water and water/sewer/garbage, etc., renter is responsible for gas and electric.
My questions are:
1. Based on the numbers, what's the fair market value? I've heard multi-family's values are based on cash flow not comps, but haven't got a chance to dig into it because this listing is a accidental found.
2. Will the cemetery affect property value or rent in the long run?
3. I plan to find a residence manager as PM. What's the fair pay to him/her managing such a property?
4. Which PM software do you recommend for smaller properties like this?
5. Any recommendations on lenders?
I really appreciate your input. Wish all BP members have an awesome holiday season!