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Updated almost 4 years ago,

User Stats

58
Posts
7
Votes
Daniel Alfandre
  • Flipper/Rehabber
  • Maryland
7
Votes |
58
Posts

Do these expenses look complete?

Daniel Alfandre
  • Flipper/Rehabber
  • Maryland
Posted

This is regarding a small, 4,000 sq. ft. office building in the MD suburbs of DC.  The building will get rents for $18/sq ft.  The rentable space is 3,200 sq. ft.  So 57,600 not including vacancy allowance.  The building was built in 1975 and was 100% leased in 2020 to present.

The owner is a retired, older gentleman who hasn't given me any source documents to back up his expenses and I don't know if he will.  He says the annual expenses are:

Trash container $4,575

Lawn Services including winter services $2,580

Cleaning Service (common space only, no suits) $2,400

Insurance $2,488

County tax $6,410

Alarm $635

Water $1,100 

Fire Extinguishers $57

I verified the above amounts are in the ballpark through other sources. Not including reserves and CAPEX, do these expenses look complete?

Thanks