Updated over 7 years ago on . Most recent reply
Multi-Family First Analysis Attempt
New to real estate and BP. I've been researching properties for the last few months, and I'm looking to make my first buy in Cincinnati OH. I would love input from members on how to best use the analysis tools. As a newbie, I am not sure if some of my assumptions are completely off. Thanks in advance for the help!!
Most Popular Reply
Based on those numbers, you exceed the 2% rule which is considered rare & very good.
When inputting your numbers make sure to be conservative in your approach, assuming a worst case scenario and accounting for everything you can think of.
- Cap Ex, Maintenance, Vacancy should be 8+% for a 4-unit
- Figure out the utilities situation (what you are responsible for vs. what the tenants pay)
- Include professional PM (typically between 8-12% depending on your area)
- The rehab required for the units and common areas
- The electric/plumbing/heating (how old, last time maintenance or repaired, etc.)
Best of luck!