Analysis Model
Your property value will change depending on the cap rate in your city. We are using a median cap rate for LA, Orange and San Diego counties. Cap rate will be affected by comparable properties sold near your property.
To get a complete picture of your property, contact ADJ Commercial to underwrite the property,
All rents computed by taking the rent per unit, then adding up all rents for the month and multiply by 12 to annualize the figure
This calculation assumes a 3% allowance for vacancy and bad debt.
Utilities are any owner-paid utilities including gas, electric, water, sewer, etc.
Repairs and Maintenance should include the cost of materials and contract labor used to repair or maintain the property. Typical expenses are for painting, landscaping, pest control, elevator, pools, janitorial, trash removal, cleaning, HVAC, plumbing, etc.
Management fee is computed at 5 percent of Scheduled Gross Income. For smaller properties with 10 units or less, use 9.5 percent (if applicable).
Payroll includes salaries, payroll taxes, employee benefits and worker’s comp. For smaller properties, this figure represents any time needed, by the owner or his representatives, to make any necessary repairs.
Insurance is for property hazard, liability and flood insurance (if necessary) with replacement cost coverage and at least $1M of liability insurance per occurrence.
