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Updated about 8 years ago,
Multi Family Deal Anaysis - Help?
Hi,
I am currently looking to buy a 36 unit multi family apartment. This will be my first multi family apartment. Can you please let me know if this is a good deal?
Asking / Agreed - $1.35M
Total Income - $210,000
| REAL ESTATE TAXES | $28,000.00 |
| INSURANCE | $11,831.00 |
| REPAIRS & MAINTENANCE | $6,000.00 |
| WATER/SEWER/TRASH | $10,000.00 |
| ELECTRICITY | $3,000.00 |
| LEASING FEE | $3,471.00 |
| GROUNDS | $5,000.00 |
| Vacancy 5% | $10,500.00 |
| MANAGEMENT FEE 6% | $13,177.00 |
| TURNOVER | $6,000.00 |
| MISC | $1,584.00 |
| Total Expenses | $98,563.00 |
Down payment - $200000 and seller will be financing $137,500 and i have to pay that back in 3 years.
NOI - $111437. Property is in B neighborhood with rents slightly below market. Water expense can be billed back to the tenant in the next 2 years. currently property is 98% occupied. Cap rate is 8.25%
Should i go through with this deal? I am nervous as i am jumping into commercial. So far i have only bought and hold SFR's and duplexes nothing this size.