Multifamily Financial Evaluation

4 Replies

Hi all,

I have the following deal. I want your help to analyze it and see if it is profitable or not. I also want to know if I am forgetting some factor or cost.

Location: Houston

Total Value:  $1.375.000

Down payment $343.750

Number of Unt: 20 Unt

                                                                 Per Year   

NOI (90% occupancy): $145.800

Loan(tax, principal and interest):       ($103.514)

Repairs and maintenance (6%):         ($8.748)

Adm fee:                                                ($5.832)

Insurance (extimated):                        ($3.000)

Total Net:                                              $24.706

I really hope you can help me and give some advice. 

Tks,

Camilo Rey

@Camilo Rey One major line item that I would include is Capital Expenditure. These are larger scale infrastructure improvements that you may have to depreciate rather than deduct within your maintenance line item. 

Tks @Jim Murray . Actually, I forgot to include all the other expenses.

This affects my NOI and makes a huge reduction. please see below a list of the cost.

Next time I will include all the cost into the spreadsheet. Keep Learning. :) :)

Expenses
Water $ 9,208.00
Gas $ 1,262.00
Light $ 800.00
Garbage $ 3,720.00
Grass $ 1,400.00
Maintenance $ 2,000.00
Insurance $ 7,080.00
Taxes $ 16,098.00
Other $ 1,400.00
Tot Mo.Exp (YTD) $ 42,968.00 

@Camilo Rey It's amazing how the expenses can vary region to region and even town to town with an area sometimes. 

Best of luck on pricing the deal.

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