Contractor · Columbia, SC · Member since 2014 · 241 posts · 68 votes
I am working on a 10 unit (possibly 11) 800 sf 2/1's multifamily that consists of 2 quads and a duplex on the same block. 8 units are currently vacant and are in dire need of renovation. The numbers I am working with are $120,000 purchase price, and $150,000 rehab. These size units are typically selling for $35,000 - $40,000 a door not renovated so it fits under 75% of ARV easily.
Puts the deal at roughly 17% cap rate and $64,800 gross annual income ( 10% vacancy rate).Section 8 may pay more, but $600 / month per 2/1 is safe.
If anyone is interested in JV'ing or lending on this deal please contact me. I'll even consider an assignment fee to wholesale it, but I prefer holding.
We may be able to help. Lots of variables at this stage, but probably 80% of pp and 100% of rehab in an escrow hold back with a 3/27 no seasoning permanent loan as an exit strategy. PM me for more details.