10 Unit Multifamily Property

[John Boychuk]

Hey, I've been interested in real estate investing for the last few years, and have been analysing deals just to build experience doing so, however, I now realise I haven't actually asked anyone to confirm whether my numbers are anywhere near what they should be.

Tax Information
Property on LoopNet - General Listing
Property on Zillow - Includes pictures of interior

This is a 10 unit property with 5 1-bedroom units, and 5 2-bedroom units. In the area 2 bedroom units seem to be renting for between $745 and $775 a month. However, this property is a few blocks closer to the water, and thereby the park, I'll assume that they can be rented out for around $800 a month, and the 1 bedrooms around $700 a month. Zillow shows previous listings for rent at $825 and $1050, so my numbers may be slightly off, but I want to be on the safer side.

The property has separate utilities for heat, electric and gas, so tenants would be paying their own bills for utilities. That would leave me responsible for snow removal and lawn care as well as waste removal (which would be around $93 a month for a 4 cubic yard dumpster which should be sufficient.

First Analysis - I wanted to get a ballpark figure of what expenses would be for the property if it hadn't been recently renovated, so I ran the numbers assuming higher expenses for repairs. This analysis also assumed that the property was purchased for listing price ($875k), and ran rent numbers a bit higher($850 and $1000).

Second Analysis - $700 and $800 rents for 1bedroom and 2 bedroom respectively. Expenses for repairs and capex down to 7%, because the roof has been recently replaced and the building as a whole has been recently renovated.

Final Analysis - Wanted to run the rent numbers that were previously listed on Zillow under price history. I figure this will give me a range to work with. Numbers seem a bit too high, even though the units are much nicer than the rest of the units in the area, I personally thing the renovation was a bit over the top, and won't inflate the numbers anywhere near what was ran in this analysis.

Thank you for taking the time to read this over. What do you think of this property and my numbers? Is there something that I overlooked?