Hello BP community.I need some help.This is my first post on here, but I’ve been quietly monitoring the forums, reading books, and listening to the BP podcasts for a while now.I’m currently negotiating a deal on a multi-family property, and as this would be my first multi-family, I wanted to get a sanity check and see what the great minds of BP thoughts are on this potential deal.Here’s the info:Property description: 5 unit multi-family with all units currently rented.One unit is on a year lease, and the other 4 are on month to month.There is a sixth unit that has never been finished, but I plan to finish the unit upon purchase.There is currently no laundry on site, but if possible, I would like to add a community laundry as part of the unfinished space in the sixth unit.Additionally, there are 4 garages on the property that are currently rented as storage units.The units are all separately metered (including the 6th unit).The landlord currently pays the heating bill for the entire property because it is using steam heat and boiler.I plan to add electric heaters to each room and get rid of the boiler as this would allow me to transfer the heating cost to the tenants, and they would be able to control their own temperature.My rough estimate (I have not got bids yet) for the rehab of the 6th unit/laundry and adding electric heaters to the units is 25K.Purchase price: currently negotiating (approx 250K)Income:Current Rents:units 1-4: 549/mo.Unit 5: 595/mo = $2791/moGarages: 4 x 70/ mo = $280/moProposed Rental Income = $3,436 (6th unit at $595/mo plus laundry at $50/mo)Expenses:w/s/g = $475/moInsurance= $106/moMaint/repairs = $317/moGas = $180/mo (boiler steam heat cost)Property Management = $274/moProperty Taxes = $184/moVacancy rate is sitting around 1%-2%The going cap rate for the area is 7%-8% After finishing the sixth unit I plan to rent it out for $595/mo.

I think someone with your background could definitely get right into this area of work for a large general contractor.https://jobs.skanska.com/jobs/new-grad-project-eng...Here is an okay job description of a project engineer for a large general contractor....

And as it matures your in the CEO type job description..

I noted in your description you started your real estate portfolio through a house hack.

Just honestly describe the place in your descriptions; get the reno's done; take some new photos; and update your listing. 

Please refer to Ballot 4-12 for additional information on an Incomplete Transaction (http://www.neach.org/uploads/resources/doc/nacha_ballot_4_2012.pdf) or as the description for R10 is: “Customer Advises Unauthorized, Improper, Ineligible, or part of an Incomplete Transaction.”I request that my charge be cancelled, and the funds be returned in full to my account.Please confirm.Thank you,[TENANT NAME] -----------------------------------------------END BLOG POST ----------------------------------------------------------------------------------------------------------------------------------------MY FYI ...

There are at least 5 parties here (from your description) with personal property that may or may not be secured.

Mention in your listing description about the mobile homes next door.

Regarding some of the questions, this is Freddie Mac's description of its methodology which does seem as a reliable means of having some idea of home price movement: "The Freddie Mac House Price Index (FMHPISM) provides a measure of typical price inflation for houses within the U.S. ...Series are available at three levels of geographical aggregation: Metropolitan Statistical Area (MSA), state, and national.

So, for a smaller investor, the numbers may skew;I think you nailed it with the rest of your description.