new investor looking to purchase a 21 family
Hi everyone this is my first post here though I have been lurking for quite a bit. I have found a property that looks promising and would like everyone's opinion on the deal. The area is ny state. Just at the cusp of the metro area. The property is a class d multifamily that is in good shape. All 21 units have been renovated. And units are 100 % rented for the last 18 months
Here are the numbers.
Monthly rent roll. 23000
Monthly expenses 1300
Monthly taxes 3000
All 2 bedrooms
Asking price 2,000,000
The only issue that I can find is that the heat for the tenants is electric. But that's the tenants responsibilty. All the tenants have been in the property for the last 18 months with 10% being in the property over 3 years.
Now what worries me is the current owner has owned the property for 25 months which he spent the first 6 months renovating the apartments and the renting them out. I spoke with a few of the tenants and there only complaints where the cost if there electricity bill during the winter months which where about 300 a month.
Now here in ny we had a mild winter. And we have a cold winter those heating bills will skyrocketed possibly chasing the tenants out... This would meen I would have to find new tenants almost every year if the high heating bill pushes the tenants out...
What do u kind folks think about the deal... And the electric heat situation.