Philly Deal - 40 Units - Questions

[Neel Patel]

Hello all,

I recently came across a deal that I am actively pursuing in the Francisville neighborhood of Philadelphia. It is a new construction building 40 units. Current owner has the building about 75% occupied with average rent at $1300/month. My initial assessment yields a 9% cap rate, however, I am not 100% confident in my property management numbers.

Questions:

1. I am accounting for 4-5% of rental income for property management with the assumption that the management company will handle finding tenants, marketings, collecting/managing rent and security deposit, maintenance issues, etc. Is this accurate?
2. Any recommendations on a property management company?
3. Any other things I should be accounting for?

Thanks!