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Updated about 5 hours ago,
Trash removal costs and reserves for 22 unit commercial building in Dublin, CA
Hi. I inherited a partnership in a 22 unit commercial building with 8 restaurants, a grocery store, a couple of personal care services, and various other businesses. Rent is around $130k per month. I was surpriesed to see that trash removal is $20k per month, but ti's a recoverable operating expense so maybe I shouldn't care. Does that amount seem reasonable?
Also, I see about $30k going to the reserves each month, which is currently at $650k. The property is valued at about $22m. Is this a reasonable reserve? What should I expect?
Finally, I get an annual disbursement of $40k. My ownership is 1/18 (6.5%) and equity is about $900k. This doesn't seem like a great ROI for a $900k investment. Should I be getting more from my investment?
Thank you!
:dave