Do you have a property manager who handles the bills, utilities and rents?

For family ventures we have utilized LLC's, however the best advice I can provide is make sure your operating agreements are clear for the good and the bad even with family.

It's scalable, utilizes economies of scale and not for nothing it makes for a great story.

The "market" numbers are an assumption I'm making by finding current available units on the market in the same area (and I'm being somewhat conservative with these numbers).What I'm trying to figure out here is whether or not I'm calculating the valuation properly given the income, expenses, and cap rate.Area Cap Rate for small multifamily: 7.3%Monthly Gross Rent: $5,390.00 (below market rents)Monthly Expenses: $3,803.40 (taxes, insurance, shared utilities, 5% vacancy, 5% CapEx, 11% property management)Monthly NOI: $1,586.60Annual NOI: $19,039.20NOI / 7.3% Cap Rate: $260,810.96Assuming the rents were elevated to market rate, the calculation would be:Monthly Gross Rent: $6,775.00Monthly Expenses: $4,025.00 (taxes, insurance, shared utilities, 5% vacancy, 5% CapEx, 11% property management)Monthly NOI: $2,750Annual NOI: $33,000NOI / 7.3% Cap Rate: $452,054.79Below, I'm trying to figure out how to "value" the property at based on the income, assuming a 25 year, 8%APR DSCR loan for 75% of the purchase price that requires 1.25x coverage.

Monthly I want a clean P and L, variance to budget, payroll and contract services creep, marketing spend vs leases signed, and a quick scan of utility bills for spikes.

Land $1.5mm (you); 40 upscale townhomes say $2.5mm (you); Utilities/Roads/parking/fire/storm sewers/surveys/landscaping/etc $1mm (you); Construction Interest during construction and sale period say 4 years (you); assume the GC is not funding the material/labor/subs/etc (you); he is just giving his GC time for free???

Also, reduce the number of tasks you have to complete remote, because every interaction is prone to issues.

Another tip I can give is try to avoid buying houses where the utilities are not on, leaks usually always come up when you go to run the water for the first time.

Documentation is complete.Photos, utility confirmations, and inspection checklists are prepared in advance.

It’s central geography, reliable utilities, water access, and scalable land.