I was reading over some text on a mutli-fam units in Ohio and saw this:
“This is a well maintaned 5 unit property consisting of 4 one bedroom units and an efficiency”
Not sure how good the property was. All 5 units were rented. It looked nice. Breakdown was:
Scheduled Gross Income: $22,980
Vacancy: $1,100
Effective Gross Income: $21,880
Operating Expenses: $11,261
Maintenance: $1,000
Taxes: $1,670
Insurance: $1,225
Other Expenses: $5,325
Total Expenses: $11,261
Net Operating Income: $9,544
Debt Service: $6,355
Pre-Tax Cash Flow: $3,189
Asking price was $120k
An “efficiency” is an efficiency apartment…basically a one room apartment with a bathroom. Sometimes the apartment will even have a “Murphy bed” that stows in the wall.
They are OK if there are other apartments to carry the cashflow. In high rent areas (NY, SF, etc.) they are a cheaper alternative to a 1 Bdrm…they actually rent pretty well near a University (as you can probably imagine!)…
Keith
evergreen,
I just calculated the numbers you put on the post and they don’t add up to what you wrote. Check your numbers again. Seems like you are missing expenses or added wrong. Also the NOI (Net Operating Income) is wrong too. Just thought you would like to know. Maybe you didn’t list all the numbers for privacy sake.
RJ
I just did a cut and paste.
They probably messed up something. No biggie for me. I was not looking to buy it 