All Forum Posts by: Chris T

Ok I have an update... The prop is not class d but class c.. the caveat is all the units have been renovated. New kitchens,appliances.all new bathrooms and tile throughout every apartment. The building itself went through a complete renovation meening roof' pointing' aswell as the common areas being improved...
My realtor has walked every unit and met 19 of the 21 tenants. All wiring class folk who keep there places in great shape:..

So the property I am looking at has 20% expenses... Also I have a reputible prop manager that is willing to manage the place for 7%... The deal breaker in my opnion is if the expenses are not right or if the electric heat the tenants pay will minimize the apreciation of rents and prop value...

I just want to thank evryone for replying.

Thanks for the replys:.....

The expenses also seamed low to me:.. here they are broken down even further.
Water. 500 a month
Insurance 500 a month
Electric 300 a month
And I forgot to add landscaping and snow removal which is another 500 a month

So we have a total of

1800 in expenses
3000 in taxes
a mortgage of
10000
With a rent roll of 23000

It leaves 8200
X 12 ... Is 98400 a year. Which is almost to good to be true. 20% return on cash down.... Am I missing something here.

Oh and the guy selling has his own cunstruction biz . He buys low fixes up the prop and has had propertys for the last 20 years. Aparently he is selling everything and moving to the caymen islands. This is the last building he had left to sell..

Hi everyone this is my first post here though I have been lurking for quite a bit. I have found a property that looks promising and would like everyone's opinion on the deal. The area is ny state. Just at the cusp of the metro area. The property is a class d multifamily that is in good shape. All 21 units have been renovated. And units are 100 % rented for the last 18 months

Here are the numbers.

Monthly rent roll. 23000
Monthly expenses 1300
Monthly taxes 3000
All 2 bedrooms
Asking price 2,000,000

The only issue that I can find is that the heat for the tenants is electric. But that's the tenants responsibilty. All the tenants have been in the property for the last 18 months with 10% being in the property over 3 years.

Now what worries me is the current owner has owned the property for 25 months which he spent the first 6 months renovating the apartments and the renting them out. I spoke with a few of the tenants and there only complaints where the cost if there electricity bill during the winter months which where about 300 a month.

Now here in ny we had a mild winter. And we have a cold winter those heating bills will skyrocketed possibly chasing the tenants out... This would meen I would have to find new tenants almost every year if the high heating bill pushes the tenants out...

What do u kind folks think about the deal... And the electric heat situation.