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Updated almost 7 years ago,
Philly Deal - 40 Units - Questions
Hello all,
I recently came across a deal that I am actively pursuing in the Francisville neighborhood of Philadelphia. It is a new construction building 40 units. Current owner has the building about 75% occupied with average rent at $1300/month. My initial assessment yields a 9% cap rate, however, I am not 100% confident in my property management numbers.
Questions:
- I am accounting for 4-5% of rental income for property management with the assumption that the management company will handle finding tenants, marketings, collecting/managing rent and security deposit, maintenance issues, etc. Is this accurate?
- Any recommendations on a property management company?
- Any other things I should be accounting for?
Thanks!