About to start the remodel of this 1920's church near down town Tucson. The church is roughly 8,000 SqFt and our plan is to create a mix use space with 2 residential units and a 5,000 SqFt office space to house our construction, real estate, property management and consulting companies. In the early 90's a remodel on the church was started and they added roughly 4,000 SqFt before running out of money. It has sat in the current condition for the past 15 years.
We purchased the property along with 3 additional vacant lots and two run down properties for $325,000. We have since sold off two of the lots and one of the houses to investors who plan to remodel/build. We kept one house that we fully remodeled and rented out for $1,100 per month. Currently our total investment into the project for the church and a 1,100 SqFt 3/1 rental property and 1 R3 vacant lot is $170,000.
Our estimated remodel on the church is $400,000 (able to keep costs lower because of the in-house construction company). Once completed we are looking at roughly a 11 cap on the property and a very modern work space for our team.
Newer to bigger pockets so hopefully this is the right place to post this.
Thanks for reading and hope you like the pictures.
My business partner and I have both been biggerpockets members since the start of 2015 which coincides with the start of our flip/wholesale business in Pima County. Do you mind if we pop in and nose around, press the flesh and just get to know you better.
Fun project. How are you calculating your projected 11% cap rate? Your capitalized cost divided by NOI? What would the market cap rate be when it is completed and leased?
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