Brandon, FL · Member since 2017 · 70 posts · 32 votes
8y
Hello Leo,
In my opinion, I would let the property pay for the majority of the rehab over a 2 to 3 year period. Keep the cash on hand for the next potential investment. Good luck
Thanks John. The cash flow doesn't look as great but we’re on the same page. I’m also making assumptions on the rent post rehab that may or may not happen.
Inspection should be scheduled by for Friday and that should also give me a good idea on what is absolutely necessary to rehab and what can wait.
Net Monthly Rents after mortgage & expenses: $1,015
Cap Rate: 7.6%
Cash on Cash Return: 6.76%
Property was built in 1929 and is in Chicago (Irving Park). Walking distance to multiple train lines and nice restaurants.
Question: Should I lessen the rehab budget to ~35k, lessen rents by $500-700 bucks and spread out rest of rehab over 2-3 years?
Hey Leo. I have a 3 unit in Irving Park that is walking distance to both the blue and brown lines. I'd bet your property is very close to mine. Personally, I would do all of the rehab up front at once, but that is a matter of opinion...plus how crunched you are for cash, etc. PM me if youd like to discuss further.