MF Numbers, Can you think of anything else?

[Kim H.]

I say "prediction" because the property will be completely vacant when I take possession.

After lots of research and time looking at costs for updating (and negotiating with the seller to make some repairs), these are the numbers I have finalized on my 9 unit MF purchase, which is closing in March. These are 5 attached 3 bedroom townhomes and 4 individual SF homes all on 1 acre of land.

Please let me know if I am forgetting anything.

Rent: $8,875.00

Units: 9

Maintenance $1,331.25

Vacancy $443.75

Property Manager $621.25

Insurance $484.47

Utilities $150 (calculated at 85% recapture on RUBS for water, gas and electric metered separately)

Landscaping $300.00

Advertising $73.96

Ongoing Capital Expenses $887.50

Taxes $702.63

Purchase Price $385,000.00

Rehab $78,100.00

Holding Fees $17,750.00 (2 months rehab, some will rent sooner)

Closing Costs $3,500.00

Cash out of Pocket $484,350.00

Additional ideas for extra income:

Pet Rent - $10 per month per pet (the property has a huge green space for pets that I may actually fence in as a "dog park")

Appliance Rental - $25 per month for w/d, $15 per month for refrigerator (I actually ran across this idea looking for my son an apartment recently)

Property also has a big playground that I may remove -- not sure yet.

Please let me know if there are other expenses that I am not calculating (hopefully they are small :))

[Joel Owens]

I am getting a 9 cap after stabilizing if repair estimates hold up.

Are you getting a loan or really putting almost 500,000 cash down? If putting that much down you could go after a larger property that could throw off more yield upon rehab.