Multifamily Financial Evaluation

[Camilo Rey]

Hi all,

I have the following deal. I want your help to analyze it and see if it is profitable or not. I also want to know if I am forgetting some factor or cost.

Location: Houston

Total Value:  $1.375.000

Down payment $343.750

Number of Unt: 20 Unt

                                                                 Per Year   

NOI (90% occupancy): $145.800

Loan(tax, principal and interest):       ($103.514)

Repairs and maintenance (6%):         ($8.748)

Adm fee:                                                ($5.832)

Insurance (extimated):                        ($3.000)

Total Net:                                              $24.706

I really hope you can help me and give some advice. 

Tks,

Camilo Rey

[Jimmy Murray]

@Camilo Rey One major line item that I would include is Capital Expenditure. These are larger scale infrastructure improvements that you may have to depreciate rather than deduct within your maintenance line item.