9 unit Tampa Multi-Family in Lowry Park

[Raymond Rashid]

I have an off market opportunity in Tampa.

It's in Lowry Park North. I'm not sure it's a great area for investment, but that's why I'm here. I've heard once you stay west of the 275 or the opposite side of sulphur springs your fine. Does anyone have experience in this area. Does this seem like a good/decent deal?

It's a 9 unit studio building. They are asking 550k. Each unit rents for 750 per month; total $6,650 monthly. All utilites paid for by tenant. Building was built in 1981.

Revenue: 6,650

Expenses:

Mgmt: 337.5

Insurance :250

Tax: 416

Maintenance(8%): 532

Vacancy(5%): 332.50

Mortgage (4.5%, 25yr): 2,435

Net: $2347 or 260 a door. 

[Jaysen Medhurst]

@Raymond Rashid, for the location questions you should post in the local Tampa forum.

As far as your analysis:

• Good Management at 5% seems optimistic. I'd figure 8-10%.
• Vacancy rates are local, but I like 8% for MFR.
• All utilities paid by tenants? It's pretty rare that water/sewer is sub-metered, especially in a building from the 80s.
• What about CapEx, Pest Control, Lawn Care, Trash removal, and Admin/professional fees?
• What is the Cap Rate for similar properties in the area? How does that compare to your underwriting?