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

I am new to analyzing properties and could use the community's input.  I used the APOD supplied by the seller in the calculator and tried to minimize adjustments.  The two items I did change were capex (none listed so I used 10%) and repairs (bumped from 5% to 10%).  Everything else listed is based on info provided by the seller.

Here are some of the questions/concerns I have:

  • The repair amount is almost exactly 5%.  This makes me wonder if it was ballparked/estimated instead of using actual repair costs.
  • Similarly, vacancy is listed as 5%.  Wouldn't a seller normally list actual vacancy as opposed to estimated vacancy?
  • Is it normal for a seller to leave capex off an APOD or would that just be in a year where they didn't have anything to report?
  • The paperwork for the listing showed the number 4 crossed out twice and replaced with 2 for ranges and refrigerators.  Given that there are 4 1 bed/1bath units of 667 sq ft I'd expect 4 appliances.  The fact that there are only two makes me wonder if there are shared kitchens, although this seems pretty unusual and like the kind of thing that would be called out.  There are no interior pictures (which in itself is a concern) so I can't verify that there aren't shared kitchens.
  • The listing states there is a property manager on-site.  Given that this is only 4 units and they all are generating the stated rent, I'm not sure what to make of this.  I'm wondering if one of the tenants is paid to handle certain parts of the property management, such as repairs, cleaning of common areas or lawn/snow.
  • The listing states the land is residential but the property record shows the land use as commercial.  In another spot, it lists it as "C2 Neighborhood Commercial District". Is this normal for a 4 unit building?

I am still working on developing my criteria but I have developed my goals.  My aim is to get involved with affordable housing and to strike a balance between quality units with lower rents while still managing to turn a profit (albeit a lower one).  I know that there are many challenges with affordable housing and lower-income tenants so I can recognize the value in taking on a more manageable property to start.

Thank you in advance for taking the time to help me review this deal and learn more about what to look for!