Finally got a deal closing soon (Fitchburg MA)
Finally found a good deal seller accepted offer and closing soon what do you think, the property is in a good area of town and near the highway so turnover should be low, this is my first deal I found myself.
Property Type: Multi-Family
Lot Size: 15,246 sq.ft.
UNIT INFORMATION
Total Units: 2
Total Square Footage: 1,966
UNIT MIX & RENT ROLL
1 Unit - 3 Beds, 1 Bath
Square Footage: 1,116
Gross Rent: $ 1,350 Per Month
1 Unit - 2 Beds, 1 Bath
Square Footage: 850
Gross Rent: $ 1,050 Per Month
PURCHASE
Purchase Price: $ 141,000
Purchase Costs: + $ 4,230
Rehab Costs: + $ 30,910
Total Cash Needed: = $ 176,140
After Repair Value: $ 235,000
Price Per Square Foot: $ 71.7
Price Per Unit: $ 70,500
RETURNS & RATIOS (Year 1)
Cap Rate (Purchase Price): 11.6%
Cap Rate (Market Value): 6.9%
Cash on Cash Return: 9.3%
Return on Equity: 6.9%
Return on Investment: 35.9%
Rent to Value: 1.7%
Gross Rent Multiplier: 4.9
FINANCING
Cash Purchase BRRR after Renovations
ASSUMPTIONS & PROJECTIONS
Rehab Cost Overrun: 10%
Vacancy: 5%
Appreciation: 1% Per Year
Income Increase: 2% Per Year
Expenses Increase: 2% Per Year
PURCHASE COSTS
Total (3% of Price): $ 4,230
REHAB COSTS
Exterior Paint: $ 800
Interior Paint: $ 2,000
Flooring: $ 2,000
Kitchen: $ 1,800
Bathrooms: $ 2,000
Electrical: $ 3,500
2nd Exit On 2nd Floor: $ 10,000
Replace Drop Ceiling: $ 6,000
Cost Overrun: $ 2,810 (10%)
Total: $ 30,910
CASH FLOW
Gross Rent: $ 2,400
Vacancy (5%): - $ 120
Other Income: + $ 100
Operating Income: = $ 2,380
Operating Expenses (42.9%): - $ 1,020
Net Operating Income: = $ 1,360
Cash Flow: = $ 1,360
Cash Flow Per Unit: $ 680
Monthly
OTHER INCOME
Storage Rental: $100
Monthly
EXPENSES
Property Taxes: $ 275
Insurance: $ 83
Maintenance: $ 192
Capital Expenditures: $ 120
Utilities: $ 350
Total: $ 1,020
Thoughts or ideas