All Forum Posts by: Kevin Guo

Looking at the description of the water heater you currently have it looks like a commercial unit. These are very expensive to install. If you're looking for a high end model you're probably looking at 10k+ (parts and labor). Commercial water heaters are built like a tank. A 12-unit apartment doesn't seem to be like a heavy load for it. You're looking at the water heater putting out almost 300 gallons in the first hour. So, you should be able to get a good life out of the current one.

I'm guessing the problem with the carbon monoxide is that the exhaust fumes is getting pulled down? Probably whoever installed it didn't install a draft inducer/blower fan. What do the people you got estimates from propose on doing?

@James Kandasamy

Congratulations!

How did you guys go about finding the deal and doing the due diligence?

I'm on contract for a multifamily in northwest Chicago. Does anyone have any good inspectors that they can recommend? Thanks.

When you guys look at multifamily properties what's the lowest cap rate you will buy it at and what's the minimum cash on cash return to make the property worthwhile? It appears that cap rates are heading downwards in my area (<8%). Properties around 8% are flying off the shelf fast.

@Darryl Dahlen Can I PM you? I'm in the same situation as the original poster and I don't want to hijack his thread.

Hi all,

I'm looking at 6-unit apartments and most in my area are mostly C units built in the 70s and 80s, with some in the 50s and 60s. The outside is brick. Pretty clean. Seems like they stood up well against time. Inside common area is a little rough from wear and tear. The individual units can look nice with a little remodel. My main concern is the plumbing and electrical.

When I'm analyzing the numbers what's an appropriate amount I should set aside for CapEx for these kind of buildings? Also, where do I expect to spend most of the repairs on for buildings of this type and age?

Thank you.

@Anthony Chara What's the best way to do due diligence before going under contract?

How far would you need to look back at historical numbers to determine it's a good buy, or the current numbers are a little bubbly?

Does anyone have any financial models or recommend any in Excel that I can use to run some numbers and scenarios on?

I'm quite new to this so I do not have the detailed knowledge to build up my own.

Thank you.

Thank @Hubert Washington. I'll check those out.