26 Units @ $649k

[Jordan Vires]

Greetings. 

Taking a look at this deal and wanted to reach for the advice/input of others, especially with regards to owner paid utilities and offer price. 

26 units @ $659k

Gross Monthly Income $10,900

Utilities $1500.00

Water $350.00

Sewer/Garbage $425.00

Taxes $450 per month (based on list price)

Insurance $500 per month

The asking price seems a little high. 

How much should (percentage wise) should an investor put aside per month for maintenance on a building this size?

Thanks and Happy 4th of July!

Jordan

[Joel Owens]

436,000 at a 10 cap using 60% expenses when landlord pays water minus immediate capex needed.

So if inspection turned up 20,000 in repairs right now then 416,000.

I am basing off of 100% occupancy as you did not state it.

10,900 / 26 units = 419.23 a unit or 420. Very low income units with tons of headaches at that tenant base level.

Cap would have to be 12,13,14 for me to take that on. The cap you pay is a function of the area of the property, rent growth annually, the size of the property, and the tenant base among many others.