Cold calling multifamily

[Eric Hrlbock]

My friend hooked me up with a list of 145 local multifamilies w 4-16 units in my local area. I started scanning through  it and doing research on some of the properties. I first focused on 10 of them. I called all of the out of area ones first. Crazy thing is all but 2 sold recently. 

Then I went through and found a couple I wanted to find names and phone numbers. Almost right away I found a couple of the owners and made contact. 

I made cold calls and made a couple of appointments.

First one : a 15 unit (some just are rooms for rent) and multiple apartments. 

It was listed for $1,000,000 almost a year ago then shortly after taken off the market.

I met with the couple, over the years they had many places. This place they had for 44 years.  They live next door. They had a one page sheet to explain there profit loss

Everything they told me at this point has not been verified.

They take in $124,320yr.

They pay 11821 school tax

6500 village tax

3000 town county tax

5000 insurance 

3770 for landlord electric and hot water for the whole building

2500 for heat and electric for the rooms for rent 

1700 for the cleaning of the shared space and bathrooms for the rented rooms (2 shared baths and hallways for rented rooms)

375 snow plows

500 general maintenance 

320 lawn care

4300 for village water and sewer. 

Total expenses  

39786=

84534 net

On her sheet there was no vacancy or repairs. 

Roof was 3 tab and looked like soon needed replace

The siding on one side needed to be repaired.

The furnaces were put in in 2008 gas

The rooms for rent have all new electrical service.

All the apartments have 5 yr old appliances except one. 

If I give 300 k she will hold the note of 500k .

Thoughts, feedback ......

Public sewer and water. 

[Todd Dexheimer]

$500 maintenance is impossible. I would count on having $15k/year. $320 and $375 for lawn and snow seems very light. No management fee included (use around 10% of gross), no reserve account. Also you will have general admin, legal and accounting.