Hypothetical numbers for a 12 Unit

[Joseph Garner]

Just testing my numbers and what an offer should look like. Any feedback/input is appreciated!! (Keep in mind this is just a made up deal)

Asking price: $700,000 for 10 units

Area has 9% cap rate

Monthly rent is $675/month per unit

Yearly insurance $ 4800/year

Taxes $7800/year

Snow/grass removal $1800/year

Electrical for common areas $1080/year

Water/sewage/trash $8200

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Income - $81000

Expenses- $23680

NOI- $57320

Offer price- NOI/Cap rate = $636,888

Is there anything else I should be figuring into it the expenses, IE. Vacancy, cap ex, repairs, property management, etc. In my head, no. Because someone could say my property management cost 12%, which could effect the NOI. But I could be wrong.

[Bjorn Ahlblad]

@Joseph Garner I find that the 50% rule is very accurate it says Expenses are 50% of income.

I use it on my 12 unit to build reserves and make projections-it is bang on.