Purchase Price Help - 12 Unit Multi-Fam

[Brian Hall]

Hello,

Looking for some help as I venture into a 12-unit multi-family (potentially).  This will be the first time moving beyond an individual condo investment.  Would love some guidance.  Property is listed at $675K.  My concern is on how to calculate property value due to vacancy concerns.  2 units are currently vacant, with 3 additional leases expiring by January 2021.  Following are the numbers. Cap rate @ 5.5% with these numbers. 

Mortgage (20%DP) - $2899 (30-yr @ 5%)

Taxes - $500/mo

Ins - $50/mo

Fixed Exp - $400/mo

• Water/Sewer - $250
• Garbage - $150

Variable Exp - $3194/mo 

• Vacancy - $1,161 (based on current 16%)
• Maintenance - $726 (10%)
• CapEx - $726 (10%)
• Mgmt - $580 (8%)

Any guidance on what I'm missing or what type of offer makes sense would be appreciated.