Updated almost 8 years ago on . Most recent reply
Help! First time reviewing a Multi-Family deal
Hello BP Family!
I'm looking at a deal in Baldwin Park, CA for a 26 unit multi-family home. This is my first time reviewing a deal and was hoping someone can help me with some of my questions.
1. On the marketing sheet for this deal, it is calling for a 5 year hybrid mortgage. Why would it not be a 30 year loan?
2. Does anyone know the vacancy rate for Baldwin Park?
3. What is the typical expense rate in the area? What is the typical % of operating expense over the effective gross income?
4. What is considered a good debt coverage ratio?
5. What is Estimated Principal Reduction and why is it added to my total return before taxes?
If someone can help me answer these questions and let me know any additional information to look for, I'd really really appreciate it! Thanks!