Small Apartment Small Town Deal Analysis

[Derek Hughes]

So I recently took a trip to view an 8 unit apartment in a small town (Pop. ~10k) near me and after looking at the property I found that it looks to be a C to C+ property just down from an A to A+ area. The numbers on the property seem to work pretty well from what I see from a CoC return but I'm afraid I'm missing some of the ongoing expenses required to run one of these small apartment buildings. The analysis assumes paying full price and no repairs needed...big assumption...and price is probably flexible.

The property doesn't look to need much exterior work (All sides brick)but the current owner does their own management and I'm sure is low-balling the annual expenses. I would be looking to have a local property manager manage this property and assumed they take 10%. I have attached a link to my analysis. Any comments are greatly appreciated. I currently only have a single SFR that I self manage so this is mostly uncharted territory for me aside from reading.

https://www.biggerpockets.com/calculators/shared/6...

Thanks!