9 UNIT ANALYSIS (HELP)

[Rosston Smith]

Alright so I currently am in negotiations with a local property owner. Its  an off market deal so I'm not in a huge hurry, but plan to make an offer within the next week or two. I have the numbers listed below. 

Things to note:
*New roof was just put on this year
*Brand new central HVAC installed for all units
*Seller financing is not available as owner has a mortgage
*In a fantastic location

ASKING PRICE: $472k
Owner purchased 2006 for $415k

Landscaping Service - $70 per month - $840 / yr

Garbage - $400 per qtr - $1,600 / yr

Gas - $60 per month - $720 / yr

Electric - $65 per month - $780 / yr

Water - $115 per month / $1,380 / yr

Pest control - $125 per qtr - $500 / yr
(Total up to this point = $5,820)

Taxes - $6300 per yr

Insurance - $3800 per yr

Maintenance - $1500 per yr
(Total up to this point = $11,600)

Overall Total of expenses = $17,420 a year.
Note: Does not include capex.

Apt 1 - $510 per month 4/17 (Lease end date)

Apt 2 - $510 per month 1/17 (Lease end date)

Apt 3 - $725 per month 5/17 (Lease end date)

Apt 4 - $550 per month 9/17 (Lease end date)

Apt 5 - $510 per month 8/17 (Lease end date)

Apt 6 - $510 per month 8/17 (Lease end date)

Apt 7 - $1150 per month pro forma (Renovations in progress, finish on Dec 1st, vacant)

Apt 8 - $510 per month 11/17

Apt 9 - $500 per month, on month to month lease, (been there 5 years)

(MY CALC)- Total $5,475 x 12 = $65,700 - $17,420 = $48,280 NOI

(OWNER CALC)-Total $5,945 x 12 = $71,340 - $17,420 = $53,920 NOI

I have attached a picture of the building below. Beautiful! 

[John Leavelle]

@Rosston Smith

I didn't see Property Management or Vacancy in your expense list.   Might want to include them, whereas, they will definitely eat up a chunk of your Cash Flow.

Also, if they are not sub-metered will you try to get that done? Might want to include it in your Rehab or CapEx calculations. Other option of course is using RUBS.

Definitely nice looking place.  Good luck.  :)