First Multi-Unit Deal, I think I know my answer...
Hi BP. I need some input on this deal and anything I might be overlooking. Looking at a 3 unit. 2/1, 1/1.5 and a studio. I do not like the bedroom numbers, but still am interested. All units have separate utilities and are currently vacant. I am being very conservative with my numbers.
2bed rent = $750
1bed rent = $690
Studio rent = $500-550
Estimated repair cost = $25k
Taxes around $585/mo (which I will be appealing)
Insurance = $150/mo
Lawn/Snow Removal = $100/mo
Loan payment = $200/mo for about 35K
They are asking 60K.
ARV I am estimating to be around 120K
This is my first multi unit, so I want to make sure I am thinking straight.
Most Popular Reply
Hi Carolina. Perhaps my contacts are a little dirty, but is that $585 per month in taxes??? That seems awfully high for a triplex with two or less beds per unit. I would think the taxes alone is enough to chew up any potential profits. Perhaps run these numbers through the BP Calculator with those taxes and with a projected/comp reduced tax rate. Also, how long would an appeal take, because we all know how slow government paperwork can take. Just my thoughts.