What is your process for analyzing a medium multi-family?

[Michael Wentzel]

Hey friends,

I own 6 single-family properties and 2 small multi-family properties (1-4 units). I'm starting to look at medium-sized multi-family properties. There are are a couple of 8-unit buildings and one 60-unit apartment complex. What is your process for analyzing medium-sized multi-family properties? How does it differ from single-family?

I know the lending is different when I go over 4 units. I would guess my percentages that I use for expenses would be different as well. I am probably in C-class properties. I currently run my numbers at 11% for property management, 10% for maintenance, 5% for cap ex and 9% for vacancy. Should these be higher and lower for medium-sized multi-families?

I would appreciate input from those who have graduated to larger properties.

Mike