All Forum Posts by: Brian Hall

Really solid perspective @Sean Dawson. Love the idea of utilizing Guardian as well. Thanks!

Thanks for the heads up @Zeke Liston.  This property is in Indianapolis, but good to know.  Believe the markets between Columbus and Indy are pretty similar.

Thank you @Jonathan R McLaughlin and @Justin Elliott.  Plan to follow your guidance here and hope to land in a good place.  Appreciate you looking out for my inexperienced self.

Very good points and definitely many things here I had not considered.  I appreciate you bringing them to my attention.  Apologies for the confusion.  This is a 12-unit building - fully residential, 10 are currently occupied. Average rent for the occupied units is $726/mo ($7,260 total).  4 of the 12 units have been renovated, the remainder could use some minor updating but could be done over time as tenants turn over.  

I definitely had not considered any adjustment in taxes and will work toward understanding that.  The property was most recently purchased for $375k in 2016, so there should be some impact there.  Possibly a significant impact.

Insurance I estimated based upon my current coverages for condos.  Recognizing that would only cover studs in, what do you think a 12-unit residential multi-family would be?  Or at least a better estimate to work from?  

Common area electricity, security lights, etc...an additional callout that I missed.

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.