All Forum Posts by: Account Closed

@Justin R. All numbers except maintenance are from the seller directly and are what the seller paid for those costs in 2018. They are directly transcribed from a rent roll that was provided to me by the seller. 

Given this information why do you think the numbers are too low? 

Do you think the seller is misrepresenting the figures?

@Eric Schultz Yes, I have a network in NY already which is why I am interested in that market specifically. 

There is no landscaping fortunately (asphalt parking, no lawn or garden), I was assuming though that the snow removal would be included in the maintenance since I tried to apply the 50% rule here. Is my assumption accurate? 

One thing I am stuck on with financing is that I am not sure how to project costs for a commercial loan, I am not sure what closing costs, origination, term, etc will all cost. Should simply call a lender and talk to them about this, or is there somewhere better I can look for this information. I've done some Google-fu but haven't been able to find much with some brief searching. 

For the leasing fees (new leases and renewals) what is an accurate estimate? I've seen anywhere from a half to a full month's rent. I guess using a full month's rent is more conservative, but is it accurate / common? 

Thanks, I appreciate both of your responses! 

Will try to give all relevant details here, let me know if I miss anything

8 unit apartment building in Western, NY. 6x 1bd 1ba, 2x studio, 265k purchase price

Max total rents - 55,800/year 

Max Current rents 42,000/year (2 vacancies right now)

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Rents w/ 87% vacancy (on average 1 apartment always vacant) - 48,900

Trash - 700/yr

Gas/Electric - 480 / yr

Insurance - 1083/yr

Water - 1040/yr

Taxes - 7650 / yr

Management - 4128/yr

Maintenance - ?? (Not on listing) Using 50% rule, I used 9,373/yr as an estimate

Mortgage P&I - 14,400 (not sure how to estimate, I guessed with 25% down, at 6% for 30 years)

Cash Flow after expenses and Mortgage - $10,050

I feel like this looks like a good deal and that I am missing something here. Thoughts? 

@Charles Soper - Thanks for the recommendation, I just bought the book on Amazon. 

@Garrett Hawk - Thanks for the offer, I will reach out directly. 

I've been considering getting into RE investing for a long time but have always lacked capital. Now that I am further in my career I am at the point where I want to jump in and get started. 

I am looking at multi-family apartment buildings with over 5 doors so I can get commercial non-recourse financing on them. I plan to invest out of town from where I live and plan to have a property manager deal with the day to day of the property and be a proxy between tenants and myself since I already have a full time career.

I have enough to go in on a small deal all by myself, I just need to learn to get to from where I am to finding a deal sufficient to invest in. I am trying to plan my next moves for how to get into my first deal. It seems like theres 6 first steps that all need to happen at once. I am still in the information gathering phase.