Property Analysis Manchester NH

[Nate Wilson]

What does everyone think of this property? it is a 7-unit located in Manchester, NH and is kind of in the ghetto. It is fully occupied; tenant pays the utilities other than two of the units. Two units do need to be renovated but nothing crazy just some new flooring and paint. I am not sure how old the roof is, but I was told it was in good shape. I plan on having inspections done before purchase. All hot water heaters are newer and has vinyl siding. I am thinking it would be low maintenance for the most part. There is management in place, and I plan on keeping him there to handle the property.

Is this property one that you would buy? According to numbers, it looks like it would be 11% COC. I was really hoping for 12% but not sure if that is achievable.

The money that I would account for repairs, vacancy, and capital expenses, what do you do with this money if you don't have any expenses for the month or year? I was planning on keeping the money in an account until it would reach a certain amount, potentially $25k-30k, enough to cover any damage or capital expenses. Then replenish as needed before I put it in my pocket. Is this what the average REI does?

Do you think I am better off trying to find a BRRRR property? This would be my first property and not sure if I am better of putting $112k elsewhere.

Attached should be the spreadsheet with all the data. 

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[Nate Wilson]

I would love to hear more about what investors do with the money  for repairs, vacancy, and capital expenses. Can I expect to spend that every year or save to a certain number and pocket the rest.