Rental Property Investor · Greater Boston Area · Member since 2018 · 258 posts · 105 votes
7y
@Carlos Suarez Welcome to BP! The issue with your analysis is that you have 435% as your property management fee. Correct this to about 10% and you should get a more clear picture.
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
7y
@Carlos Suarez, also note that at a 6-unit, you'll need a commercial loan, which won't have as favorable terms as residential. You'll have to do 25% down. It also means the property value is based on Net Operating Income (NOI) / Cap Rate, not comps. I think your NOI will be around $25k/year. At an 8 Cap, that's a value of ~$312k.
I'd bump CapEx and Repairs to 7.5% each. There are most definitely some shared utilities that you'll be responsible for.
What are the $82k of closing costs?
Description says each unit rents for $725, but there are both 2-bed and 1-bed units. Confirm this. If correct the 2-beds are probably under market.