All Forum Posts by: Chris Hendel

Darryl,

 I am just curious as to what people thought.  My expenses are 2700 per unit and I talked with a broker today and he seemed to think that was normal for this area.   

James,

  I did include a 5% vacancy in the expenses, .03 is actual.  The property was built in 1960 but renovated in 2011.  The roof is 8 years old.  I came up with that cap by looking at buildings for sale somewhat near here and talking to a broker.  He said the properties in this area are selling 6.5-7 %  cap.   You are correct I did forget to add reserves.  I think 250 per unit is correct for that number right?

I do appreciate all your guys input it is very helpful!

Darryl,

  I actually own the building and I do self manage.  I did include a management fee which looking back is probably low.  Do you run expenses of 50% for your buildings?

Thanks,
Chris

Ned,

I keep very detail record so that wouldn't be a problem. I included a 5% vacancy rate in the expenses. I am not sure what you own but do your expenses for your buildings actually run around 50%? Also are you taking the 50% from NOI or Gross rent?

Thanks,

Chris

Darryl,

Sorry, here are more accurate numbers. Gross Rent is $209,880 and expenses are $64,982 so NOI is $144,898. I actually own the building. How would you get $105,000 in expenses? I don't come anywhere near that number. I actually increased my maintenance expense by 1200 a year just to be more conservative. I have no differed maintenance either. I manage the building myself so I have no management fee but I included a management fee in the expenses along with a vacancy rate. I am thinking about selling the building but I am not really sure what a realistic price is.

Can you all give me an opinion of these numbers and tell me what you think.

24 unit MF central corridor of Saint Louis.  Great central location close to everything.  Good neighborhood that is steadily becoming one of the hottest in Saint Louis.  Turnkey, no major work needed. 

PP: $2,200,000

Monthly Rent $17,300

NOI: $145,698

Cap 6.67

DCR 1.46

CAC 10.45%

OCC 100%

Vac rate last 2 years .03%

Just wondering what people think?