Quadplex Owner Expenses

[Dustin Owens]

I am currently looking purchasing my first multifamily.  Quadplex.  Other than mortgage payment, taxes, water, sewer, trash, grass mowing.  What am I missing?  Also the electric water heater for coin operated washer and dryer and the electric for the common areas are on the same electric meter as one of the units.  How do I as the owner pay for these items?  Just knock off $xx for what roughly these items would costs month to month on that particular unit?  Thanks for your input.

[Jaysen Medhurst]

You're missing a number of major expenses and few smaller ones, @Dustin Owens:

• Repairs and CapEx: ~15% combined
• Management: 10-12%. Always include Management, even if you plan to self-manage at first.
• Vacancy: 5-8% depending on your market.
• Pest control
• Admin/professional fees: e.g. CPA, LLC annual fees, advertising when you have a vacancy

You may be able to find a small meter to track the electric usage of the W/D and then credit back to the tenant.