Analyze a small multi-family

[Virgil T.]

Who wants to play with some numbers?

What would you offer on this property? The details as provided.

10 units(5 Duplexes), 2 bed 1 bath per unit, 640 square feet each, 2/3 acre, built in 1986, new exterior paint, new fence along parking lot, many interior upgrades: resurfaced bathtub surrounds and kitchen counters, tile floors, central heat/air. On a relatively cross street, surrounded by single family homes on 1 acre lots and other duplexes.

Each unit renting for $825. 100% capacity. First opportunity to raise rent is March 2021 with 2 units. 8 units expire May 31, 2021.

T-12 NOI $51,558

Expenses $41,282 (Taxes $18,012, Insurance $3,250, Water $7,100, Trash $4,620, M&R $5,228, Professional Fees $3,072, 6% vacancy loss $6,160)

ProForma:

Rents at $875

NOI $56,000

Expenses 44,820

Your offer would be?