10 Plex Deal Analysis

[Doug Caminita]

I am looking for some additional assistance in deal analysis for a 10 plex. This is the first time I am purchasing a property that would be deemed commercial as well as taking on the additional responsibilities that come with it.

I am looking at financing the property with a 20 year amortization and 5 year balloon and roughly a 5.5% rate.

The property was gutted and remodeled with a new roof in 2006. Currently, it mostly needs cosmetic work, paint, landscaping, power washing. The worst appears to be a cracked parking lot. One concern is that there was previously a pool in the back and that appears to have been filled with dirt and made into a garden area.

I appreciate any and all assistance and have additional information if needed.

Asking Price: $700,000
10 Units
A: $0 596 Sq ft 1/1
B: $710 596 sq ft 1/1
C: $660 596 sq ft 1/1
D: $735 596 sq ft 1/1
E: $650 392 sq ft 1/1
F: $750 586 sq ft 1/1
G: $750 596 sq ft 1/1
H: $660 596 sq ft 1/1
I: $680 596 sq ft 1/1
J: $585 228 sq ft Efficiency

Annual Total (1 vacancy): $74,160

Expenses:
Taxes: $6500
Flood Ins: $2700
Property Ins: $6000
Water Dept: $2700
Trash Collection (Dumpster): $962
Electricity: $3000
Heating and Cooling Maintenance Contract: $2000
General Maintenance: $589

Total Expenses: $24,451

Debt Service: $46,224

Totals

Rents: 74,160

Expenses: 24,451

Debt service: 46,224

Cash Flow: 3485