COC Question or ROI for a rehab project
I have a 3 unit property, 2 units were rehabbed last year and are rented out. The 3rd unit will be rehabbed this year. If I am putting in X amount of dollars and expect Y amount of Dollars, is this a scenario where I need to do CoC or ROI. If so, Do I divide the NOI of the rehabbed unit by a 1/3 of the expenses for the building? How do you measure or quantify your efforts, or do you when its only 1 unit in a property of many units.
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#2 General Landlording & Rental Properties Contributor
- Real Estate Consultant
- Cleveland
Quote from @Mario Morales:
I have a 3 unit property, 2 units were rehabbed last year and are rented out. The 3rd unit will be rehabbed this year. If I am putting in X amount of dollars and expect Y amount of Dollars, is this a scenario where I need to do CoC or ROI. If so, Do I divide the NOI of the rehabbed unit by a 1/3 of the expenses for the building? How do you measure or quantify your efforts, or do you when its only 1 unit in a property of many units.
NET income divided by all in price,
Quote from @Mario Morales:
I have a 3 unit property, 2 units were rehabbed last year and are rented out. The 3rd unit will be rehabbed this year. If I am putting in X amount of dollars and expect Y amount of Dollars, is this a scenario where I need to do CoC or ROI. If so, Do I divide the NOI of the rehabbed unit by a 1/3 of the expenses for the building? How do you measure or quantify your efforts, or do you when its only 1 unit in a property of many units.
Projected or actual income received from the project divided by the cost of the project. So if you invested $10k into a remodeling project and that generates you an additional $100/mo in cash flow or $1200 annually your CoC return is $1,200/$10,000 = 12%
