proforma expenses at 60%

[Sean Dawson]

'Evening.  I have a question for the hive.  We are talking back and forth with a broker about a 32 unit building.  Rent's look good, but expenses are coming in at 60%.  

I feel that this is due to the fact the property manager is someone who isn't local mostly.  There are expenses such as "automobile expenses, bank service charges, ______'s fees, (as well as management fees...it's the same person), office supplies, telephone expenses"  

Some of these seems to me to be for someone trying to maximize their deductions.  I also think that the buildings can be better managed with a professional management company.  

Problem is I have to be able to sell this to the banker.  Any tips on how to explain this?  

Thanks

[Charlie MacPherson]

@Sean Dawson Seems like a perfect application for a spreadsheet.

I'd create a pro-forma and call out the expenses that don't apply to you after acquisition.  Justify them, but call them out. 

Thoroughly document applicable expenses too, along with your rent rolls, etc.