Analyze my first multifamily deal

[Jonatan Nir]

Hello BP members!

I negotiating for my first multifamily deal. i guess i need some help to analyze the deal. After buying for 4 years only SFR i understand that i can not analyze multifamily deal like i can do for SFR deal.

I will appreciate your help very much!

It's a 16 unit deal. 10 one bedrooms and 6 2 bedrooms.

I will buy this deal for cash.

Purchase price: 657K

Renovation - 80K

Total price - 737k

income: 118,320

Expenses

Tax: 16,188

Insurance: 8094

Utilities: 11,680 

Vacancy: 10% - 11,832

Maintenance 10% -11,832

PM 10% - 11,832

Did i miss some in my expenses? this is the right way should i analyze the deal?

Thanks in advise!

[Dash Siva]

@Jonatan Nir 

Thank you for sharing the details on the deal. The folks here would most likely be looking for additional information to help provide a more complete assessment.

• What's the macro picture? Job growth/diversity, population growth, landlord laws, path of progress
• What are your overall goals? More cash flow, appreciation, or a blend of the two?
• What's the market vacancy? Class of neighborhood? What are similar properties trading for in the area?

Are the projections based on actuals or proforma? A few other items for consideration re expenses - accounting, legal, landscaping, pest control, admin, marketing, snow (if applicable), supplies, trash removal

What's the capex picture look like? Are the mechanicals fairly new or will they need replacement in the next few years?

Best of luck and keep us posted on your progress!