Commercial Property in Baltimore MD

[Chanel Alexander]

Hi All, 

Can a commercial investor help me estimate what property management and maintenance would be on a 19 unit residential property in the heart of Baltimore MD.   Is it safe to assume 10% if gross rents for Managment and 12% of Gross rents for Maintenance? 

[Ola Dantis]

@Chanel Alexander Ok that may justify the expense ratio. This is a personal opinion from > 100 multifamily buildings in Baltimore, MD, but the closer you are to the 75,000/unit price point the better you are. 

In addition to that, our assumption is that 40 - 55% of Gross Effective Income = Operating Expense. Yes, some might argue that this is very conservative but then I'd agree with them. 

Good luck Chanel!