15 Unit Deal Analysis

2 Replies

First time investor analyzing a 15-unit deal in. Ohio. Do the numbers add up? List Price: 850k (20% down) Units: 15 Rent Each Unit (3/1.5): $700 (conservative) Monthly: $10,500 Yearly: $126,000 Expenses: Property management fee: $12,600/yr (10%) Insurance: $2,000/yr Maintenance: $15,000/yr (1%) Tax:$10,200 (1.2%) Vacancy: $6,300 (5%) Annual Cash Flow: $38,000

Looks like a pretty good deal to me. Three other expenses I'd look out for are property manager lease up fees, utilities and CapEx. If the PM charges a full month's rent lease fee and avg tenant duration is 18 months, you're looking at $7,000/year in lease up fees. If these are all SFR, you probably won't need to worry about many utilities but definitely something to confirm by looking at lease agreements. I'm guessing that the maintenance number at $83/door/month doesn't include CapEx, so I'd make sure to factor in about the same amount for CapEx.

Also, if these are SFR, the taxes look really low. I'd look into that further.

Good luck on the deal!

Condition?? Perfect? No deferred maintenance?, 1 percent maintainance seems way low, better figure 5%. You have to account for capex, unless it is a short term flip, you consume, roofs,  hvac's, water heaters, flooring, counters, etc, etc.

Get the actual gross rents from the property owner/manager, but based on $63k net rents, try to get this for$790k or 8% cap rate

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