8 unit multi family analysis question

[Jeremy Holleb]

Hello everyone! I am about to pull the trigger on an 8 unit multi family building in Delavan WI. The property is located in an area that is appreciating and growing rapidly. This will be my first commercial multi family deal. As such, I’m nervous about pulling the trigger, especially with the risk exposure after getting my Dad to agree to partner on this deal. The last thing I want to do is make an error in my analysis and risk family money. If someone can help me look over this deal, I would be forever grateful!

[Evan Polaski]

Is your 2021 tax amount based on a 1.1mm purchase price? I am more curious what your thoughts are on purchase price. If an identical and adjacent building just traded for $1.25mm, why would a seller accept $1.1mm? Of course I hope you get it for that, but seems aggressive. Then the killer: where is your Capex? How are you funding that? What is actually needed: immediate, year 1, year 2, year 3, etc? Additionally, there are several typical items I am not seeing on here: vacancy factor, management fee (you mention seller self manages, but what about you), turnover costs beyond maintenance... Lastly, your insurance budget is less than I pay for my own single family home, are you sure about that $936?