Expense Valuation on 55+ unit

[Zac Smith]

Hey everyone, I'm evaluating an apartment complex in Central Texas. After going through the proforma I made, my NOI seems way low. I can't base the expenses on real numbers, due to not having anything that's current (foreclosure that's still operating under PM).

EGI: $654k

Operating Expenses (annual)

Adv. & Marketing: $38/unit (3.6% of EGI)

G&A: $40/unit (4% of EGI)

Utilities: $4,280/unit (42% of EGI o_o...other comparable apartments are including rents at higher rents. I could probably do that and the EGI would go up by $69k)

Repairs & Maintenance: $767/unit (7.5% of EGI)

Service Contracts: $125/unit (1.2% of EGI)

Management fee: 7% of EGI

Make Ready and rollover: $310/unit (smaller units and this is accounting for a 60% renewal rate)

Property Taxes: 2.13% of future assessment value 

Insurance: $753/unit (7.4% of EGI...the building was built in the 60s and rehabbed in 2012) 

Total OpEx: 82.8%

Thoughts?