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Updated over 5 years ago,

User Stats

63
Posts
28
Votes
Christa S Rickard
  • Tampa, FL
28
Votes |
63
Posts

First time investor looking for a check on expenses

Christa S Rickard
  • Tampa, FL
Posted

I've only analyzed a few packages thus far and would like some feedback from those with experience. 

I found a 6-unit, C class property in NC selling for $222K with a 9.7% cap. All units are 2bed/1bath. The actual rent roll shows three of the units rent for $450 and the other three rent for $395, which puts an annual gross of $30,420. 

From what I've read on numerous places, multifamily expenses range from 45-55% of gross income. However, these expenses are only ~ 10%, which should be a sign of missing/understated expenses. They seem to have most of the expense categories included. My problem is I don't know if the values they list are realistic or understated. 

insurance $2,285
landscaping $300
management $1,606
professional $200
property taxes $2,190
maintenance $4,155
utilities $19
total $10,755

I need to know if these expenses are reasonable before I decide if/what to offer.

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