Sold $2,300,000 - Investment Property
Here is a great deal for anyone who has the ability or the resources to renovate. It goes like this….. for $2.3 million you get 6 units fully vacant and with plans (permit ready to issue) to convert the existing layout into two detached 1150 sq ft 3 bed 2 baths and four 800 sq ft 2 bed 2 baths with bonus room that can be used as a bedroom.
My projection is it will cost somewhere between $400k and $450k to complete the work, but at the end you will have 6 units that should generate $19.5 – 20k/mo. of income, and you are ‘all in’ at between $2.7 and $2.75 million.. This means a 6 cap or, in other words, it should generate $5500/mo cash flow, or about 10% cash on cash return. By the way, since it is actually two triplexes and not an actual six unit property, you can get regular residential financing if you want to.
