Analyze poorly managed multi family in Houston Area

[Tristan S.]

Hello everyone,

I am trying to get a hang at analyzing multi family properties in Houston. It is actually a property where a friend of mine is renting. We are trying to evaluate it. It is a 6 plex in the heart of the city (montrose/midtown area). The landlord is a slumlord, there are no leases in place, no maintenance is ever done, the rent are easily 50% below market.

Firstable, I would like to know if anybody knew what would be a realistic cap rate to assume for this neighborhood (Montrose/Midtown districts of Houston) ? 

Then I was going to calculate the NOI and determine the actual value of the property. For the NOI, what shall I assume for maintenance, lawncare ..etc since the landlord actually never spends any money on that. I am not sure what shall and shall not be taken into consideration, knowing that it will directly impact the valuation of the property.

Thanks for your help.