While Dennis answer is correct, the problem we find in the industry is the lack of disclosure of expenses. I am in Southern Florida so that the perspective I will use:
Expenses I see on Multi-Family properties missing or very low stated are Insurance, Water, Trash and code violations that have not been paid. it's in that order, be surprised how many times I don't see the insurance on the reports( real insurance for example flood, wind, storm, and umbrella. Water and Trash I discover different on due diligence and code violation from knocking on the city.
Sep 28, 2017