Updated about 9 years ago on .
2 Story Mixed Use Building...$625K Retail & Office...
Great Value Add project!
Here is the info on the property at 1457 Florence.
It is listed for $625K now and I think we could purchase it for $550-$575K which is a 5% cap rate at $550K.
The play here is that the upstairs offices are vacant and need to be slightly renovated....Carpet/paint...freshen up and rent up for $400-$500 per office.
That effectively doubles the income in a relatively short period of time....the Gross income would then be $3500 + $3100=$6600.
The retail units rents can be raised $200 per unit which would take us to $7200 monthly in gross rents.
We would also plug into the Aurora Urban Renewal Loan program to get money for windows, lights, parking lot, roof, etc and they loan the money and if if you pay for half of it for 5 years they forgive the 2nd half of the loan totally.
So we get the improvements for 50% of what it cost and improves value of building.
My business partners have done this to about 8 of their properties with great results....
That gives us a 14% cap rate at a $550K purchase price roughly....We could then refinance to get your cash back?
Keep it and I can manage and we are 50/50 partners?
It is also in the Aurora Arts District which will be more signifigant later on as Fitzsimmons is finished....