Analyze my first Apartment Building deal

[Marco Campos]

Looking for feedback on the possible deal below.

This property is in a B to B+ Neighborhood.

13 Unit $490,000 (loan would be 5.5%, 10 Yr, 25 Yr amortization w/20% down)

9- 2 Bdr and 4 1-Bdr (2 bd apts range from $700-750 and 1 bd apts $600-650)

Gross Rents $108,000

Taxes: $16,700

Insurance $4,500

Utilities Est $20,000

(Includes Water, Sewer,Electric,Gas,Trash)

Management 10% Est $10,000

Vacancy 5% $5,500

Maintenance Reserve 5% $5,500

Net Est $46,000

Thank you for any feedback or ideas in advance. I want this property but I need a sanity check. I adjusted these numbers (increased) from the original pro forma to be as accurate as possible.

[Steven Gesis]

Originally posted by @Marco Campos:

Looking for feedback on the possible deal below.

This property is in a B to B+ Neighborhood.

13 Unit $490,000 (loan would be 5.5%, 10 Yr, 25 Yr amortization w/20% down)

9- 2 Bdr and 4 1-Bdr (2 bd apts range from $700-750 and 1 bd apts $600-650)

Gross Rents $108,000

Taxes: $16,700

Insurance $4,500

Utilities Est $20,000

(Includes Water, Sewer,Electric,Gas,Trash)

Management 10% Est $10,000

Vacancy 5% $5,500

Maintenance Reserve 5% $5,500

Net Est $46,000

Thank you for any feedback or ideas in advance. I want this property but I need a sanity check. I adjusted these numbers (increased) from the original pro forma to be as accurate as possible.

Marco-

Not bad, the only tweak i would recommend is negotiate your Apartment management to 8% and place 2-3% for CapEx

Descent numbers just depends on the actual condition of the units and the building itself. At a 9% cap based on the thread Is aw, I hope you have limited future CapEx and the condition of the units is updated.