Updated almost 8 years ago on . Most recent reply
Under contract for a 3 unit buy and hold rental property
Purchase Price: 440k
Down Payment (25%): 110k
Rehab budget: 70k
Gross Monthly Rents after rehab: $4,250
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?