25 Units with potential rent Increase and RUBS..11.35% return

5 Replies

Hi BP community,

Let me know whether you think this is a good deal. A 25 units MF property with 5.26% current CoC. My analysis shows that if I do rent increase and RUBS of water, I can bring the CoC to 11.35% and get 48% of my cash back in 12-18 months. The returns seems to be low or "normal" compare to the usual SFR space that I am used to. I am thinking of passing on this deal due to the low excitement that i get from the potential returns. My dilemma is , is this "Good" return in this hot seller's market . Could this be a good training wheel project in MF space ? .Am i passing up a good opportunity here ?

James and Shanti

How would you get your money back in 12-18 months with an 11.35% cash on cash return?

Dave

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