Multi family deal analysis in KC, MO

[Chris Fusco]

Hello BP community,

I'm evaluating my first Multi-family deal and was curious on people's thoughts. It is a 'turnkey' investment that is currently being rehabbed by a contractor I have a relationship with & trust. When complete it will have a new roof, LVP throughout, granite countertops. I was hoping to put out the specs on this deal and see what you would offer to see if my analysis is on point or not:

Type: Fourplex

8 bed & 4 bath (each unit 2/1)

Zip code: 64130

Total sq ft: 2550

Unit 1 & 2: 625 sq ft, no access to garage

Unit 3 & 4:  650 sq ft, access to garage

Utilities: Gas & Electric metered individually & paid by tenant. Water is common. I am estimating $215/mo, but feel free to use your own numbers

Property Management: 8.5%

Expected Rent: $3510/mo ($855 for smaller unit, $900 for larger), feel free to use your own numbers

Vacancy assumption: 8%

Capital & Maintenance assumption: 10% (obviously that's aggressive for a turnkey, but I'm focused on longer term, not the first year or two)

Taxes: $436 (but that's from before it was bought & fixed up. It was a run down duplex before that is now being expanded). I've double this in my math, but don't have a good feel for when it will be re-assessed and how much it will go up.

Insurance: $3610, but that's a guess from my contractor, waiting on a quote

Interest rate: assuming 7% (waiting on a quote) my contractor has offered to buy some points but hasn't said how much yet

Given all that info, what would you offer on this?