First Multi-Family Property Acquired

[Sant S.]

Hello all,

Just over one month ago I finally closed on my first multi-family property. It is a 6 unit property in Jersey City. Below are the income / expense numbers & acquisition costs. Property was purchased in a LLC.

INCOME / EXPENSE

Purchase Price $500k

Down Payment: 25% or 125k

Commercial Loan: $375k

Amortized over 20 years, first 7 years at locked in at 5%. Then loan adjusts to 2.5% over FNYS rate. I intend to hold the property until the loan is paid off.

Debt expense is roughly $2400 / month

Annual Tax: $10,500

Insurance: $3,500

Heating expense (Nat Gas): roughly $4850 / year (One boiler for entire building & two water heaters)

Estimate expenses at 5% of Gross Income

Annual Rent Roll: 70k

ACQUISITION COSTS:

Lawyer: 1k

Appraisal & Environmental: $2300

Tank Sweep, LLC Set up, Survey, Misc: $1500

Title Fees & Bank Attorney: $5K

Bank Origination Fee, Gov Record Fees: $3k

The property did come with one unit vacant which I filled this month. All units are up to date on rents. There is some minor deferred maintenance. Stair case between third floor and roof need to be strengthened. As every time I walk on them I feel like they are ready to collapse. Good thing these stairs are only used when someone needs to access the roof. That is the most urgent on the maintenance list. All else is minor, like siding maintenance.

I am managing this property while maintaining my full time job. I am looking for feedback of the above figures. Also, this is my first multifamily property and I just feel like I am missing tasks as days go by. I have read up on Jersey City rent control. Filed the necessary annual forms. Intend on using a reputable accountant to do my taxes this year as with an LLC it’s not advisable to do your own taxes. I go to the property roughly 2-3 times a week since its 10 minutes away. Check the common halls, basement, utilities. I collect rent checks in person even though I have a PO BOX set up and the tenants got a welcome package from me and I have re-signed all leases as my LLC as Lessor & tenant as Lessee’s. Is there a starter guide on biggerpockets for once you acquire your properties? or any feedback from investors in similar situations as me?