Are these realistic expenses? (tri-cities, WA)

[Andrew Anderson]

Hello BP Community,

I'm looking at a 28 unit off-MLS multi deal that I believe I could at least put a bid on, but (as usual) their reported operating expenses seem low (esp maintenance/repairs if they assume CapEx in that figure). I know a lot is locally/structurally dependent, but I would love any advice or suggestions on expense comps for a 28 unit. You can assume a class B+ property. My broker said he didn't think they were too far out of line. Here is annual data that I received.

Sched Gross Inc: $259.3k

Tax/Insurance: $26.5k (10.2%)

Utilities: $18.1k (6.7%)

Professional+On-site Mgmt: $23.9k (9.2%) (need to find their SoW)

Maintenance & Repairs: $14k (5.4%)

Landscaping: $2.1k (0.8%)

Admin: $1.4k (0.5%)

Total Exp: $86k (33.2%)

I'm thinking of adding an additional 12% of gross on for CapEx. Would this make the deal more realistic? Thanks!