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I work in and around the area, not too familiar with the rents. The numbers work but I'm curious what the renter base is and if maintenance should be higher? I based rents off rentometers median 2bd rent of 875 and 3bd 950. Can anyone confirm rents in the area in this range? Thankyou guys, I am only prospecting the area for future purchases (first property). I Have no serious interest in the property itself
I grew up dealing with a multi fam where none of the utilities was separated except electricity. Here is some advice if you like. From the looks of that building it isn't a high society area. Here are some things to consider:
1. Vacancy. You need to find out how long and how much it takes to evict someone. You have two options be a bulldog and LL and evict the trouble makers otherwise the trouble makers will chase the good people away. So up that percentage, perhaps 12% to include lawyer fees. Also, it's great feeling to be paying gas and water bills when the tenant refuses to pay the rent.
2. Water. Who is going to alert you that the pipe is leaking, toilet flap is not sealing, someone left the hose in the backyard/slop sink on.
3. Single thermostat/gas bill. Be prepared for calls and complaints. Be ready for the frozen bag of peas on the thermostat to crank the heat. Be ready for windows wide open.
4. Super. You will need someone to manage the trash. He needs to take out the trash or at the very least make sure it's separated and not have litter all over the ground. You will get a fine for trash.
Any similar type of property will need a really good Super is is getting an amazing deal and does not want to F#@& it up. Will make sure the trash is organized, water isn't flowing for no reason and will mob and clean common areas. Have the lawyer on speed dial and make sure you get rid of bad seeds and make sure you keep the good tenants happy.
Me personally, I won't look at a building w/out separate utilities. I burn through enough cash just on maintenance. Good luck!