Sold $850,000 - Investment Property
It does need work but I have the inspection report available for you, and you really don’t need to spend more than $100K to take care of the deferred maintenence. You actually don’t need to spend ANY money right now, as it is getting the income it is getting, and all units are functioning just fine at present.
I have a property that no one knows is available, that pencils out gorgeously, and you can have it if you want it. Here’s the specifics:
a) It can be had for $850K.
b) It is currently making $9000/mo income ! It has wonderful cash on cash return !
c) It does need work but I have the inspection report available for you, and you really don’t need to spend more than $100K to take care of the deferred maintenence. You actually don’t need to spend ANY money right now, as it is getting the income it is getting, and all units are functioning just fine at present.
d) As it is more than 5 units it is a commercial property and, as such, you need to put down at least 30%, maybe 35%; you will also pay higher interest, say around 6%. However, even with these numbers it still ‘pencils out’ as follows: You will have a net income, after mortgage, prop tax, insurance, water, trash, maintenence setaside,etc. of $4200/mo, or $50K/yr. With down payment, closing costs and renovations you are at $400K out of pocket. That means approx 12.5% cash on cash return, and in an upside location.
e) One of the units is a large single family residence. Per the city you can split the lot (it is a 27,000 sq ft lot) and then flip the house and make a substantial profit.
If you want help with this one or you want more info contact me and I will help you with it.
