[Calc Review] Help me analyze this deal - Los Angeles Triplex

[Vanessa Ganaden]

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*This link comes directly from our calculators, based on information input by the member who posted.

Yep, here is a Los Angeles deal for you to take a look at. I know LA is a crazy expensive place, but I might be crazy enough to even look at deals here. So advice is welcome! What am I missing here? 

[Tim Herman]

@Vanessa Ganaden Vacancy of 3%, maybe ,highly localized. Only 1 of your units can be vacant per year. Repairs at 5% look good. Capex at 3% looks low. Since I don't know the size of your units i will assume their is a total of 3000 sf of flooring. In my area it costs $6 sf to replace. 3000 sf*$6 sf=$18000/8year life span/12 months in a year=$188 per month for 1 item. I don't know if the garages are separate so you might have to budget for 2 roofs 25 life span (unless flat then only 15 years), appliances and hot water heater 12 years, hvac 20 years, and I could give you more that you need to budget. Garbage for 3 units and only $50 per. Insurance on $800 k for $100 per. Management for 5% is unheard of more like 10% or more. Since you don't list water and sewer I assume there are separate meters and lines. No utility expense, No lawn or groundskeeping expense. You might want to rerun the numbers again.