All Forum Posts by: Michael Kay

@James Wilcox

Oh, absolutely, I'm grateful for BP. I figured my first public analysis would be terrible. It'd be suspicious if I did it right the first time.  :)

Thanks for the note about common area maintenance. Definitely a good idea to keep in mind!

--michael

@Ryan Camenisch ,

Thanks for the estimates for capex and maintenance. That's super helpful! I really do appreciate your on-the-ground knowledge. Thanks again!

--michael

@Brian Johnson ,

Interesting. That's definitely a good thing for me to remember. I don't think I've ever read that so far, so it's super helpful. :) I really do appreciate the reply, it really helps me out.

--michael

@Bob Woelfel ,

Yes, definitely expenses were wrong. What would be a typically good estimate for expenses? 

Thanks so much for mentioning these points. It really helps and drives home what I need to remember about analysis.

--michael

@Garrett Spear ,

Thanks for the note about PVA site. I think I had a typo in it. I think some of my cost estimates were definitely off and some of them were guesses. Definitely a way to drive the point home!

Thanks so much for your reply, it really does help!

--michael

@John L. ,

All good points, thank you very much. Yes, I think the expenses are low. Thanks so much!

Hi! I'm looking at my first purchase and I think I'd love feedback on the numbers I found

12 unit apartment building in Brucetown area

Purchase: 380,000, 20% down
Expenses, Annual:

  Property Tax: 1400
  Insurance: ~3000
  Maintenance: 2000

  Mortgage Pay: 19, 231
  Vacancy: 3000 (5%)

  Property mangement: 6000
  Misc Cost: 200

Annual Income: 57000
  Cash Flow: 25,000

NOI: 44,000

I'm really thinking that this may be the one I want to make my first purchase but I'm hesitant because it seems too good to be true. The cap rate seems kinda high. Also, some minor rehab appears to be needed for a few of the units. The area seems kinda like a C neighborhood If I do make an offer, I'm going to offer much lower because of these reasons.