Hello All,
I am thinking of buying a multi-unit property somewhere in Williamsburg NYC. I do not have any experience managing or valuing a property. I created a preliminary model for assessing the potential returns from an investment.
https://docs.google.com/spreadsheets/d/1YIeI2N55mGMTSErOwSFTrlj8qOHnI3EQsA9xZb-45Ag/edit?usp=sharing
I was wondering if the model made sense or any warnings about what I am getting myself into potentially.
I have few things wondering about:
-
What is the Capex as % of annual rent I should use? Is it 15%, 25% etc?
-
I read operating expenses should be 50% of Rent, but the brokers have given me something that amounts to maybe 9% of rent.
-
What should my cost basis be? Original property value + any capex I spend?
-
How many hours would I be expected to spend per month on managing on this property (4 units, 4200 SF, 3.25M property value)
Thanks in advance for any input!