4 Single Family Homes on 1 Lot

[Daniel Watrous]

Hi everybody,

I am looking at 4 homes (all 2 bed/1 bath) on the same lot being sold together (with owner financing) in Connecticut.

Please take a look my expenses below and let me know if there is anything missing, because right now it is only a break-even (or just barely ahead deal) but the units are in a great location. There is a navy base, a coastguard base, and 3 major manufacturers nearby. All figures are quotes from providers with the exception of vacancy and maintenance estimates(*). Maintenance was estimated at $1.10/SF and I used a 6% vacancy rate:

Gross Scheduled Income $71,280

Vacancy Allowance* ($4,276)

Gross Operating Income $67,004

Operating Expenses:

Property Management ($7,128) 10% Gross Monthly Rent

New Tenant Fee/yr ($2,970) ½ Month Rent per unit

Property Taxes ($6,645)

Insurance ($5,698)

Maintenance* ($5,322)

Trash Removal ($1,896)

____________________

Net operating Income $37,345

All units have independent wells and electric meters. All the units are currently rented on annual leases. Thanks in advance for your input on my first potential deal.