5 unit Deal analysis advice for a novice, here are the numbers...

[Nicholas Fazio]

Hey all! What’s up BP! New to this, first post, gotta get feet wet, right!? No previous exp, learning all facets of these processes, super interested in Multi’s, my target and focus of learning. I’m evaluating deals, or should say, learning to. Have numbers on a real property but for confidentiality sake, will keep it there. It’s a 1930s build in a sweet rocking area of town, good bones, nearly turn key and “100%” occupancy. Really nice looking deal, I have not walked it, but today’s focus is the strategy, play, and exit from someone who could mayyyybe be GP and execute the deal and provide sweat-eq. to possibly investors from out of state, or if a better entrance to the game with little money let me know. Ok, numbers. I have found an analysis spreadsheet that’s super basic, so I have what I have.

Price $750k. 5U, $150k/unit, est repairs $20k(?), closing $24k- total of $194k to close. 25% down. Gross Potential income $66,300, vacancy $3,315. Expenses at 9.34% are around $6500, with $1500 reserves/mo- total expenses $8000(11.49%). NOI given is $61,615. Cap 8.22%. COCR 14.85%. DCR 1.88. Nice. Avg annual return 25.5% with a total combined profit $246,908. The expenses concern me as super low, I'd expect something around $30k or more. I feel like some of the numbers are fluffed...typical. Avg county tax rates 0.778%, around $5,835/yr so I know expenses are way off, lends me to think what else is off? Now, I really don't know what to do. This is why I post. Please advise-thank you BP

[Bjorn Ahlblad]

@Nicholas Fazio If you are looking for advice I would definitely advise you to keep looking. This property will not make you any money and I say that and you already know-the expenses are way higher than what is being indicated here. NOI is likely 30K asking price should be under 500k. Let someone else bust their pick on this one.

Welcome to BP and all the best!!