First time multi unit investment

[Sam Spoerl]

Hi,

My name is Sam and I am a new user of the forms and inviting. So I am looking for any advice that I can get. I’m looking to buy my first multi family property. I’m really trying to find any information on what expenses I might be not thinking about. But any advice would be great. 
Thank you,

Sam

[Ian Stuart]

@Sam Spoerl

Real Estate Taxes: Know where the County Assessor will re-assess your property value post purchase (talk to an appraiser for guidance). You’ll likely get reassessed in line with purchase price, top end of the comp set, or your taxable value will be capped. Know before you buy.

Insurance Premium Quote: Get one.

Utilities: Get the full historically, and ID any upside by installing energy efficient fixtures, etc (LED lights, low flow appliances/fixtures, etc)

R&M / Future Capex: Get a PCA inspection done to idea any future capex / deferred maintenance and get on it. Major stuff like roof, building systems, parking lots, siding, etc - id any issues that'll need to be addressed then either (a) knock out immediately or (b) budget a reserve so you can cover when it comes up.

Mgmt Fee/Payroll: Make sure your management fee isn’t ripping you off - comp out their %EGI fee. Should need onsite payroll if you’re <15units.

Advertising/G&A: Depending on comps and direct area. General and admin should be <$150/unit especially for a small deal with no onsite staff / leasing office / etc

Replacement Reserve: Ties into the R&M capex comment. Always put away $250-400/unit per year for replacements and capex. Better to have it and not need it vs. need it but not have it.