All Forum Posts by: Rosston Smith

 You're right! This is definitely off. Will be looking into this further. 

 12% Property management would end up as $7,884 so the property would cash flow $2,812 afterwards. 

Vacancy at 5% of gross rent would equal $3,285 / yr, which ends at -$-473 cash flow.

So if PM and Vacancy were incorporated at current rent rates, would lead to negative cash flow.

What is RUBS? Will be confirming sub metering soon!  THANKS!!!

 Absolutely! Its in an amazing location as well.

 I believe the utilities are fairly accurate. I own a 4 unit, and paid $81.14 for water last month.

I do not believe anything is sub metered. I'm assuming its not, however I can confirm this soon. I can generate a list of questions to ask the seller. 

Forgot to mention also, its a 12,000 sqft building. The interior can use tasteful improvements like paint, decorations, and etc... The current rents haven't been raised in 7 years. They could most definitely be raised due to the superior location and building and are also under market. 

I would budget $100 per door for capex, so $900/mo - $10,800 / yr. 
Mortgage with 25% down would be $26,784 /yr. 

After capex and mortgage added, I'm left with ($48,280(NOI)-$26,784-$10,800= $10,696 cash flow a year.

Alright so I currently am in negotiations with a local property owner. Its  an off market deal so I'm not in a huge hurry, but plan to make an offer within the next week or two. I have the numbers listed below. 

Things to note:
*New roof was just put on this year
*Brand new central HVAC installed for all units
*Seller financing is not available as owner has a mortgage
*In a fantastic location

ASKING PRICE: $472k
Owner purchased 2006 for $415k

Landscaping Service - $70 per month - $840 / yr

Garbage - $400 per qtr - $1,600 / yr

Gas - $60 per month - $720 / yr

Electric - $65 per month - $780 / yr

Water - $115 per month / $1,380 / yr

Pest control - $125 per qtr - $500 / yr
(Total up to this point = $5,820)

Taxes - $6300 per yr

Insurance - $3800 per yr

Maintenance - $1500 per yr
(Total up to this point = $11,600)

Overall Total of expenses = $17,420 a year.
Note: Does not include capex.

Apt 1 - $510 per month 4/17 (Lease end date)

Apt 2 - $510 per month 1/17 (Lease end date)

Apt 3 - $725 per month 5/17 (Lease end date)

Apt 4 - $550 per month 9/17 (Lease end date)

Apt 5 - $510 per month 8/17 (Lease end date)

Apt 6 - $510 per month 8/17 (Lease end date)

Apt 7 - $1150 per month pro forma (Renovations in progress, finish on Dec 1st, vacant)

Apt 8 - $510 per month 11/17

Apt 9 - $500 per month, on month to month lease, (been there 5 years)

(MY CALC)- Total $5,475 x 12 = $65,700 - $17,420 = $48,280 NOI

(OWNER CALC)-Total $5,945 x 12 = $71,340 - $17,420 = $53,920 NOI

I have attached a picture of the building below. Beautiful! 

Hey I live in Macon! Would love to network! PM me if you have any questions!

Congratulations on your first property! 

Welcome back man! Great choice!

Yes Sam it should. Congratulations!

Hello Kay! Welcome to BP!