Updated almost 7 years ago on . Most recent reply
[Calc Review] Help me analyze this deal
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Hello Bigger Pockets nation! I found this property while doing research and I find it very intriguing, but unfortunately it is also confusing as heck for me. I have never owned anything like this property and all the variables are defeating my brain. There are 16 studios, 3 retail spaces, a laundromat, and a parking lot. According to Rentometer a 1BR in this area rents for 750 so for my analysis I made all the studios 700. I made the laundromat and the retail spaces 1200 each. The property tax information is reliable as I contacted the town clerk. I have no idea what a water bill would look like for this, nor what the liability insurance policy payment would be. I suppose my question is to all of you out there who own large building and complexes out there, how do you properly analyze something like this? What are the extra costs and considerations that are not present when looking at a simple 1-4 unit house? And how do you wrap your mind around all of this stuff to get a realistic picture of what the cash flow would be like?
This will probably be little more than an exercise because I would have to leverage myself to the max in order to lay a hand on this, unless I had a partner. That being said, if all the numbers were good I might just be dumb enough to go for it. Thanks all!