Multi-Family and Apartment Investing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago on . Most recent reply
Upfront costs when buying an Apt building
Outside of the down payment, I'm trying to calculate how much money I'll need to have ready upfront in order to purchase a 12 unit apt. I know the exact numbers will vary dependent on location, season, etc. But could someone toss some numbers out for
- Appraisal
- Inspection
- Title
- Legal review
- Reserves
- Tax/Insurance pre-pay (is it 6th months? a year?)
- Anything else I might be missing.
Seems like it really adds up. Thanks in advance!
Most Popular Reply
@Steven Kleppin The costs vary but here are a few rules of thumb that we use to start with until we get more into our due diligence.
Appraisal - $3000
Inspection - $250/unit
If the building is older than 1972, lead paint inspection - $200/unit
Title processing and search - $900
Legal fees (for syndication) - $8500
Total lender fees and reports - $6950 (includes appraisal cost)
Title/closing attorney fees - $3000
Survey - $600
Title recording - $207
Reserves will be determined by your lender and insurance company’s requirements and tax jurisdiction.
Good luck!