Critique my analyses of This multi family

[Daniel Hinojosa]

I am practicing my ability to find and analyze local multi families in the Detroit area. I would appreciate input on this property and my analysis of the investment . Thanks ,

Dan

https://www.redfin.com/MI/Hamtramck/11471-Mitchell-St-48212/home/61307959?600390594=copy_variant&231528114=control&1778901559=variant&utm_source=ios_share&utm_medium=share&utm_nooverride=1&utm_content=link&utm_campaign=share_sheet

https://docs.google.com/spreadsheets/d/12CWzouCDWDUHCj_I6dKu2upjopAucZUacRSKgCwJUhY/edit

[Mike Smith]

@Daniel Hinojosa Your expense ratio is $806/$3300 = 24.4%

Most single family and duplex homes run expense ratios very near 50%.  Even large scale multifamily that is 20+ years old will typically run expense ratios 35-45%.  I don't think I've ever seen a pro-forma on a brand new large scale multifamily that was as low as 24%.

So, my quick analysis is that your expense ratio is about half of what it will actually end up being.  I would recommend re-running your numbers with a more realistic expense ratio.