Costs on a 20+ unit building

[Scott Lyons]

Not sure if this is the right spot for this but if you've seen any of my other posts you know I'm a newbie (zero properties so far). While my plan is to start small (2-4 unit multifamiles), I came across a property with ~30 units that lists for 1.3M. I'd love to eventually get to this point and I've read and heard on the podcast that you shouldn't necessarily start small, so I figured I'd try to run this property through my calculations.

That being said, I'm trying to understand some of the additional costs that may be involved with a property of this size. No doubt I would hire this out to a property manager, which I've been told to estimate 8-10% of revenue. I'm still estimating a 10% rental fee. Besides the obvious costs like utilities, insurance, maintenance, and taxes, are there other ones I need to know about and what they would run? The only other one I can think of is waste management/trash removal fee but I have no clue what this would cost.

[Antoine Martel]

You should really start small and learn with the small stuff before you go and buy 30 unit apartment building.

For multifamily you really have to look at how the property has performed in the past and use those financials to make future assumptions of the cash flow on the property.