Multi-Family First Analysis Attempt

[Cole Welch]

New to real estate and BP.  I've been researching properties for the last few months, and I'm looking to make my first buy in Cincinnati OH.  I would love input from members on how to best use the analysis tools.  As a newbie, I am not sure if some of my assumptions are completely off.  Thanks in advance for the help!!

[Steve DellaPelle]

Based on those numbers, you exceed the 2% rule which is considered rare & very good.

When inputting your numbers make sure to be conservative in your approach, assuming a worst case scenario and accounting for everything you can think of.

- Cap Ex, Maintenance, Vacancy should be 8+% for a 4-unit

- Figure out the utilities situation (what you are responsible for vs. what the tenants pay)

- Include professional PM (typically between 8-12% depending on your area)

- The rehab required for the units and common areas

- The electric/plumbing/heating (how old, last time maintenance or repaired, etc.)

Best of luck!