Nov 3 • Crunch The Numbers
12 Park owned
Category Monthly Annual
Actual OPEX (from rent roll) $2,302 $27,624
Gross Income (actual) $9,895 $118,740
35% Expense Ratio Equivalent $3,463 $41,382
🔸 Comparison Summary
Metric Actual 35% Ratio Difference
Monthly Expenses $2,302 $3,463 +$1,161 higher under 35%
Annual Expenses $27,624 $41,382 +$13,758 higher under 35%
NOI (Actual) $91,116 $77,358 $13,758 lower under 35%
Cap Rate (at $900K) 10.1% 8.6% ↓ 1.5 points
Monthly Cash Flow (after $3,560 payment) $4,033 $3,396 ↓ $637
⚖️ Interpretation
The current expenses (≈23% of income) are low but possible for a small, tenant-maintained park with water/trash only paid by owner.
Using a more conservative 35% ratio gives a truer long-term picture — covering reserves, turnover, and management overhead.
Even at 35%, the deal still cash flows strongly, producing roughly $3,400/month net to owner after debt services
3
0 comments
12 Park owned
skool.com/commercial-real-estate-101
Teaching people just like you how to build wealth with multi-family and other type of commercial real estate.
Leaderboard (30-day)
1
+81
2
+50
3
+38
4
+22
5
+21
Powered by