[Calc Review] Help me analyze this deal - First Property

[Denzil Dwelle]

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[Josh Howell]

Denzil, I own a few small apartments in and around Detroit. One of them is a 7 unit, which is probably a good comp to the property you are looking at. I think your assumptions for utility costs are too low. My costs are averaging about $60-80/unit per month for water, and about the same for gas and electric during the winter. Most properties have gas heat and DHW in Detroit, so I'm assuming your property is the same. Also, don't underestimate snow removal costs in the winter! In February, I spent $500 on snow removal. Just build in some weather contingency into your proforma. Last winter (2017) was fairly mild and never spent more than $200/mo on snow removal. 

I'd bump up your vacancy percentage. Again, keep in mind that it is very difficult to lease up in the winter. If I have a unit come up for rent during the winter, I make the tenants do a 14-16 month lease so that we would be re-read leasing in the spring/summer if they leave. 

Hope that helps! Good luck.