Property Analysis Feedback

[Justin K.]

Below is detail on a property in Niagara County , NY. I analyzed this property earlier this year and just closed on the deal last month. I have some lessons learned including the expectation that I was not as conservative with the maint/CapEx/Vac as I should have been for a multi-building lower income property. I'm curious to hear what the community has to say. Thanks!

The property consists of two detached buildings. The front building was built in 1900 and has a 2 BR unit lower (current rent 675) and a 1 BR upper (current rent 500). The back building was built in 1920 and consists of 4 1 BR units. The property has mostly new furnaces and water tanks. Some new windows, and a moderate amount of smaller differed maintenance (broken door handles etc). These are lower income apartments with 3 units receiving Sec 8 assistance.

Purchase Price: 157,000
Units: 6
Annual gross: 38,340
Taxes: 4,547
Gas (Landlord): 2,380
Water: 2,280
Insurance: 1,708
Maintenance(5%): 1,917
Snow Removal: 650
Cap Ex: 1,200
5% Vacancy: 1,917
Debt Service: 860