[Calc Review] Help me analyze this deal

[Scott King]

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*This link comes directly from our calculators, based on information input by the member who posted.

Greetings all,
I'd appreciate any insights on this off-market multi-family (20 units - 13 x 1-bdrms, 7 x efficiencies) opportunity just 4 miles west of Cleveland, OH.  $1M purchase price, $300k repairs, and an assumed $1.6M after repair value, with after-repair/lease-up total monthly gross revenue of $14.7k .  Some highlights (or lowlights) that the calculator does not consider - property is CURRENTLY VACANT and will require ~$300k of repairs/upgrades before lease-up...so BETWEEN 9 MONTHS to 1 YEAR of 100% VACANCY BEFORE LEASE-UP BEGINS.  I don't believe the calculator is built to take that into account.  Projections were provided by seller's agent, and I'm just now starting my due diligence.  Would really appreciate any thoughts from those of you who have a lot of experience analyzing multi-family deals.

Thank you!

Scott

[Chris Seveney]

@Scott King

BP calculator is really not the right tool for this - you should create a multifamily proforma on the asset and include absorption rates (how long will it take to lease up property), along with all the other factors that come into play.