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Real Estate Deal Analysis & Advice

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Jameson Drew
  • Investor
  • Los A, CA
38
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69
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My first multi-unit

Jameson Drew
  • Investor
  • Los A, CA
Posted Nov 16 2015, 07:03

Property located in Muncie, IN.  Local bank owned the note and just wanted it gone from their portfolio for $6900.  Too good to pass up.  Got on a plane to Indiana to check it out.

Property had sat empty over a very cold winter and the pipes burst due to improper winterization.  Asset manager thought it would be a very expensive rehab, hence the price.  Turns out, everything was mostly cosmetic.  Each unit is a 3/1.5, roughly 1000sqft a piece.  HVAC was still intact, but I added two swamp coolers to the units for renter retention (renters moved in 2 years ago and havent heard a peep from them since).  Drywall and pergo installed.  Total renovation cost of around $20,000.  Each unit rents for $600 and unit is fully occupied.  Taxes are $945 a year.  Property is locally managed for 10% of the rent.

Property is assessed at $44,000, but local realtors have given me an estimated value of $50,000.  Still, Im holding onto this money maker for some time.

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