All Forum Posts by: Kris Miller
Kris Miller has started 1 posts and replied 3 times.
Post: Multi-Family Purchase Analysis
- Investor
- Harlan, IN
- Posts 5
- Votes 3
@Adam Adams (& others) thanks for the input, I appreciate the advice. I would call it a lower Class B, well maintained property. The property is 100% occupied. I have the following monthly expenses accounted for:
Vacancy 613
CapEx 818
Repairs 511
Util 100
Insur 420
Lawn 1000
Trash 75
Taxes 947
Mgmt 511 (which I currently do myself)
With your formula I think I am coming up with an offer of 766k. The asking price is 700k. If I finance with 0 down (using all equity from a couple other properties) I am coming up with cash flow of 643 or 43/unit. This is a far cry from what Brandon preaches of 100/unit/month. Am I missing something? Should I not include mgmt fees since I do it myself? How do I investigate rent ceiling? Or do I walk away until I have more DP? I know it’s all a “numbers game” and I feel like I grasp the numbers but I don’t know if I am overlooking something or unrealistic in my expectations. My first MF (a 20-unit) kind of fell in my lap and I barely even analyzed it before going into contract because my gut said it was good and it has been for the past 5 years. I have analyzed this one to death and am starting to look cross-eyed!
Post: Multi-Family Purchase Analysis
- Investor
- Harlan, IN
- Posts 5
- Votes 3
Gross income currently is $10,225 & expenses are $4,996 so NOI is $5,229. I have used the BP calculators & some of the guidelines recommended by Brandon turner but I'm not getting the same results he recommends so I'm trying to decide if I take the plunge or forgo the deal until I have a larger down payment. I want to get into sheriff sales in order to flip a few to put more money down on MF but this deal came along and I haven't been able to get any traction at the sales.
Post: Multi-Family Purchase Analysis
- Investor
- Harlan, IN
- Posts 5
- Votes 3
I am new to BiggerPockets but looking for a second or third opinion on a multi-family purchase analysis in Fort Wayne, Indiana area. I am looking at a 15-unit property. I have run it through the BP Calculator using expenses provided by seller and some of my own assumptions. Current monthly income is $10,225, my assumed operating expenses (excluding loan pmts) are $4,996. Is there a quick way to calculate what I should offer or ultimately pay? The property is off-market and this was the result of a letter so the owner is not extremely motivated to sell.