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Updated about 9 years ago,
should this be my first deal?
I am looking at this deal that includes 2 six plexes and 1 five plex. It will be one closing and they all share a parking lot. These are old houses that have been converted into apartments. My biggest question marks are maitaince and capex. I have figure them high thinking worst case. My biggest concern here is that they are boiler heated house. I havent had any experience with these and dont know what the cost might be. the two 6 units share a boiler that looked 10-20 years old and the 5 unit has a brand new tank less system. Also i will be self managing but have put in management for analysis. Any feed back would be great.
List Price: 250000
Purchase Price: 225000
Repair cost: 35000
Income: before update 7590 after update 9350
Utilities: 1925/1925
Insurance: 225/225
Taxes: 632/632
Snow/lawn Care: 100/100
Garbage: 100/100
Management: 607/748 at 8%
Repairs/maintenance: 1138/1402 at 15%
Capex: 759/935 at 10%
Vacancy: 759/935 at 10%
P&I: 1105/1105
Thank you for any feed back
Adam