Multi-Family Rental Analysis - What do you think of this deal?

Question

I am having a little trouble with calculating the maintenance/capex expenses. I would be putting 20% down with a 3 year ARM amortized over 20 years (no balloon payment). My best guess is the property needs about $5,000 in more immediate maintenance.

Class

MULTI-FAMILY

Asking Price

$137,500

For Sale

IDX Include

Y

Age

61-100

Garage Capacity

None

Garage Type

None

GENERALVOW IncludeYesVOW AddressYesVOW CommentYesVOW AVMYesForeclosure (Y/N)NoShort Sale (Y/N)NoNumber of Acres0.310000Number of Units3OccupiedYListing Date1/11/2015Year Built1947ZoneRESSurveyNLot Dimensions187x155Unit 1 -SqFt675Unit 1 -Bedrooms1Unit 1 -Baths1Unit 1 -Rent750Unit 2 -SqFt700Unit 2 -Bedrooms1Unit 2 -Baths1Unit 2 -Rent850Unit 3 -SqFt812Unit 3 -Bedrooms2Unit 3 -Baths1Unit 3 -Rent900Owner PaysOILTenant PaysELECTRICOriginal Price$184,900Days On Market353FEATURESCONDITIONGOODAPPLIANCESRANGEREFRIGERATORFLOORSCARPETCERAMICHARDWOODFIREPLACE DESCRIPTIONSTUCCOFIREPLACE LOCATIONLIVING ROOMBASEMENTMIXEDUNFINISHEDCOOLING/AIR CONDITIONINGNONEHEAT SOURCEBASEBOARDHEATING FUELOILHOT WATERELECTRICPROPANEGARAGE/PARKING EXTRASDRIVEWAYDRIVEWAY-SHAREDCONSTRUCTIONFRAME/STICKACCESS/SHOWING INFOAPPOINTMENT REQ.CALL LIST AGENTSTYLECOLONIALWATERDRILLED WELLSEWERSEPTIC-INGR.WATER WAYSESOPUS CREEKVIEWSMEADOWPLUMBINGMIXEDROOFASPH SHINGLEOWNER PAYSINSURANCEMAINTENANCEOILTENANT PAYSELECTRICGASTRASHPORCHDECKOPEN FINANCIAL Management0Employees0Water0Trash0Fuel3800Electric200Insurance2000Supplies0Total Taxes4500Miscellaneous100Annual Expenses10600Monthly Income$2,500Annual Income$30,000Cap Rate10School Tax$3,000General Tax$1,500REMARKS Great multi-family investment opportunity! Well maintained 3 family residential property (2) 1 bedroom units on 1st floor (1) 2 bedroom unit on 2nd floor.Landlord includes heat, lawn maintenance & snow removal. Unit # 1-1st floor-1 bedroom, spacious, bright rooms, large windows, EIK, ornate fireplace,washer/dryer hook up $750.00 Unit#2- 1st floor 1-bedroom unit- rear lots of privacy completely renovated $850.00 Unit # 3 2nd floor 2 bedroom unit, brightopen & airy floor plan. Vaulted ceilings $900.00AGENT REMARKS1st floor 1 bedroom undergoing renovations. Huge improvement..

GENERAL

VOW Include

Yes

VOW Address

Yes

VOW Comment

Yes

VOW AVM

Yes

Foreclosure (Y/N)

No

Short Sale (Y/N)

No

Number of Acres

0.310000

Number of Units

3

Occupied

YListing Date1/11/2015Year Built1947ZoneRESSurveyNLot Dimensions187x155Unit 1 -SqFt675Unit 1 -Bedrooms1Unit 1 -Baths1Unit 1 -Rent750Unit 2 -SqFt700Unit 2 -Bedrooms1Unit 2 -Baths1Unit 2 -Rent850Unit 3 -SqFt812Unit 3 -Bedrooms2Unit 3 -Baths1Unit 3 -Rent900Owner PaysOILTenant PaysELECTRICOriginal Price$184,900Days On Market353FEATURESCONDITIONGOODAPPLIANCESRANGEREFRIGERATORFLOORSCARPETCERAMICHARDWOODFIREPLACE DESCRIPTIONSTUCCOFIREPLACE LOCATIONLIVING ROOMBASEMENTMIXEDUNFINISHEDCOOLING/AIR CONDITIONINGNONEHEAT SOURCEBASEBOARDHEATING FUELOILHOT WATERELECTRICPROPANEGARAGE/PARKING EXTRASDRIVEWAYDRIVEWAY-SHAREDCONSTRUCTIONFRAME/STICKACCESS/SHOWING INFOAPPOINTMENT REQ.CALL LIST AGENTSTYLECOLONIALWATERDRILLED WELLSEWERSEPTIC-INGR.WATER WAYSESOPUS CREEKVIEWSMEADOWPLUMBINGMIXEDROOFASPH SHINGLEOWNER PAYSINSURANCEMAINTENANCEOILTENANT PAYSELECTRICGASTRASHPORCHDECKOPEN FINANCIAL Management0Employees0Water0Trash0Fuel3800Electric200Insurance2000Supplies0Total Taxes4500Miscellaneous100Annual Expenses10600Monthly Income$2,500Annual Income$30,000Cap Rate10School Tax$3,000General Tax$1,500REMARKS Great multi-family investment opportunity! Well maintained 3 family residential property (2) 1 bedroom units on 1st floor (1) 2 bedroom unit on 2nd floor.Landlord includes heat, lawn maintenance & snow removal. Unit # 1-1st floor-1 bedroom, spacious, bright rooms, large windows, EIK, ornate fireplace,washer/dryer hook up $750.00 Unit#2- 1st floor 1-bedroom unit- rear lots of privacy completely renovated $850.00 Unit # 3 2nd floor 2 bedroom unit, brightopen & airy floor plan. Vaulted ceilings $900.00AGENT REMARKS1st floor 1 bedroom undergoing renovations. Huge improvement..

Y

Listing Date

1/11/2015

Year Built

1947ZoneRESSurveyNLot Dimensions187x155Unit 1 -SqFt675Unit 1 -Bedrooms1Unit 1 -Baths1Unit 1 -Rent750Unit 2 -SqFt700Unit 2 -Bedrooms1Unit 2 -Baths1Unit 2 -Rent850Unit 3 -SqFt812Unit 3 -Bedrooms2Unit 3 -Baths1Unit 3 -Rent900Owner PaysOILTenant PaysELECTRICOriginal Price$184,900Days On Market353FEATURESCONDITIONGOODAPPLIANCESRANGEREFRIGERATORFLOORSCARPETCERAMICHARDWOODFIREPLACE DESCRIPTIONSTUCCOFIREPLACE LOCATIONLIVING ROOMBASEMENTMIXEDUNFINISHEDCOOLING/AIR CONDITIONINGNONEHEAT SOURCEBASEBOARDHEATING FUELOILHOT WATERELECTRICPROPANEGARAGE/PARKING EXTRASDRIVEWAYDRIVEWAY-SHAREDCONSTRUCTIONFRAME/STICKACCESS/SHOWING INFOAPPOINTMENT REQ.CALL LIST AGENTSTYLECOLONIALWATERDRILLED WELLSEWERSEPTIC-INGR.WATER WAYSESOPUS CREEKVIEWSMEADOWPLUMBINGMIXEDROOFASPH SHINGLEOWNER PAYSINSURANCEMAINTENANCEOILTENANT PAYSELECTRICGASTRASHPORCHDECKOPEN FINANCIAL Management0Employees0Water0Trash0Fuel3800Electric200Insurance2000Supplies0Total Taxes4500Miscellaneous100Annual Expenses10600Monthly Income$2,500Annual Income$30,000Cap Rate10School Tax$3,000General Tax$1,500REMARKS Great multi-family investment opportunity! Well maintained 3 family residential property (2) 1 bedroom units on 1st floor (1) 2 bedroom unit on 2nd floor.Landlord includes heat, lawn maintenance & snow removal. Unit # 1-1st floor-1 bedroom, spacious, bright rooms, large windows, EIK, ornate fireplace,washer/dryer hook up $750.00 Unit#2- 1st floor 1-bedroom unit- rear lots of privacy completely renovated $850.00 Unit # 3 2nd floor 2 bedroom unit, brightopen & airy floor plan. Vaulted ceilings $900.00AGENT REMARKS1st floor 1 bedroom undergoing renovations. Huge improvement..

Zone

RES

Survey

N

Lot Dimensions

187x155

Unit 1 -SqFt

675

Unit 1 -Bedrooms

1

Unit 1 -Baths

1

Unit 1 -Rent

750

Unit 2 -SqFt

700

Unit 2 -Bedrooms

1

Unit 2 -Baths

1

Unit 2 -Rent

850

Unit 3 -SqFt

812

Unit 3 -Bedrooms

2

Unit 3 -Baths

1

Unit 3 -Rent

900

Owner Pays

OIL

Tenant Pays

ELECTRIC

Original Price

$184,900

Days On Market

353

FEATURES

CONDITION

GOOD

APPLIANCES

RANGE

REFRIGERATOR

FLOORS

CARPET

CERAMIC

HARDWOOD

FIREPLACE DESCRIPTION

STUCCO

FIREPLACE LOCATION

LIVING ROOM

BASEMENT

MIXED

UNFINISHED

COOLING/AIR CONDITIONING

NONE

HEAT SOURCE

BASEBOARD

HEATING FUEL

OIL

HOT WATER

ELECTRIC

PROPANE

GARAGE/PARKING EXTRAS

DRIVEWAY

DRIVEWAY-SHARED

CONSTRUCTION

FRAME/STICK

ACCESS/SHOWING INFO

APPOINTMENT REQ.

CALL LIST AGENT

STYLE

COLONIAL

WATER

DRILLED WELL

SEWER

SEPTIC-INGR.

WATER WAYS

ESOPUS CREEK

VIEWS

MEADOW

PLUMBING

MIXED

ROOF

ASPH SHINGLE

OWNER PAYS

INSURANCE

MAINTENANCE

OIL

TENANT PAYS

ELECTRIC

GAS

TRASH

PORCH

DECK

OPEN

FINANCIAL

Employees

0

Water

0

Trash

0

Fuel

3800

Electric

200

Insurance

2000

Supplies

0

Total Taxes

4500

Miscellaneous

100

Annual Expenses

10600

Monthly Income

$2,500

Annual Income

$30,000

Cap Rate

10

School Tax

$3,000

General Tax

$1,500

REMARKS

Great multi-family investment opportunity! Well maintained 3 family residential property (2) 1 bedroom units on 1st floor (1) 2 bedroom unit on 2nd floor.

Landlord includes heat, lawn maintenance & snow removal. Unit # 1-1st floor-1 bedroom, spacious, bright rooms, large windows, EIK, ornate fireplace,

washer/dryer hook up $750.00 Unit#2- 1st floor 1-bedroom unit- rear lots of privacy completely renovated $850.00 Unit # 3 2nd floor 2 bedroom unit, bright

open & airy floor plan. Vaulted ceilings $900.00

AGENT REMARKS

1st floor 1 bedroom undergoing renovations. Huge improvement..

George P. · Answer

i got dizzy just scrolling down past the useless information.

you should be more concise if you want concrete feedback.

Joseph M. · Answer

@Logan Hicks I have to confirm what is included in the annual expenses of $10,600.

Also, how did you get $8,112 in debt servicing? I am looking at a 3 year ARM amortized over 20 years with no balloon payment.

Logan Hicks · Answer

Based on the numbers I saw, its an excessively negative performing property

after all the taxes, insurance, fuel, and annual repair costs, you have roughly 9100 left, before debt servicing. With Debt servicing, you have roughly 8112 in total debt per annum.

This considered, your overall profit per year would be a meager 1000, or even less. And thats assuming you NEVER have a surprise cost.

All in all, id say its a shitty buy. Pass.

Joseph M. · Answer

@Daria B. I updated it so only the relevant info is there.

Daria B. · Answer

@Brian Maida

When you copied and pasted his information it's just all over the place. I agree with @George P.in that it's difficult to read and get an understanding of his property.

You may want to type in only specifics like the # of units and the rent and other information like expenses and then get feedback.

If you read through what you posted, a lot of not is irrelevant to the analysis.

If you do copy and paste then go back before you post to remove all the return lines and white space that is making this so long and difficult to read.

Joseph M. · Answer

How is this @George P.

I am having a little trouble with calculating the maintenance/capex expenses. I would be putting 20% down with a 3 year ARM amortized over 20 years (no balloon payment). My best guess is the property needs about $5,000 in more immediate maintenance.

MULTI-FAMILY

Asking Price

$137,500

Number of Acres

0.310000

Number of Units

3

Occupied

Y

Listing Date

1/11/2015

Year Built

1947

Zone

RES

Survey

N

Lot Dimensions

187x155

Unit 1 -SqFt

675 - 1 BR

Unit 2 -SqFt

700 - 1 BR

Unit 3 -SqFt

812 - 2 BR

Days On Market

353

Fuel

3800

Electric

200

Insurance

2000

Total Taxes

4500

Miscellaneous

100

Annual Expenses

10600

Monthly Income

$2,500

Annual Income

$30,000

Cap Rate

10

School Tax

$3,000

General Tax

$1,500

REMARKS

Great multi-family investment opportunity! Well maintained 3 family residential property (2) 1 bedroom units on 1st floor (1) 2 bedroom unit on 2nd floor.

Landlord includes heat, lawn maintenance & snow removal. Unit # 1-1st floor-1 bedroom, spacious, bright rooms, large windows, EIK, ornate fireplace,

washer/dryer hook up $750.00 Unit#2- 1st floor 1-bedroom unit- rear lots of privacy completely renovated $850.00 Unit # 3 2nd floor 2 bedroom unit, bright

open & airy floor plan. Vaulted ceilings $900.00

Multi-Family Rental Analysis - What do you think of this deal?

Most Popular Reply