68 unit Complex - 1st Multi Family Investment
I am a new member and we finally closed on my first multi family investment last week. It is 68 units in Orange Texas. It flooded for the first time during hurricane Harvey. So it will need a complete interior rehab. The good thing is, that I have been working with other investors as a contractor to rehab their properties the last 15 years. I have replaced several million square feet of siding and have probably 3 to 4,000,000 ft.² of roofing covered in Houston and surrounding areas. I've been wanting to get into this business, but finally got an opportunity to do so. Although I have great confidence in the construction side of this investment, we will be looking to get tips and ideas on how to best operate and run the property. We purchased the property for 1.1 million. I estimate the rehab costs to be close to 1.2 But we are going to do the exterior siding even though it doesn't really need it. Looking to be the best product and best price for the area. Can anyone share what kind of margins we should be shooting for? Hoping to profit about 250K a year… Realistic?
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Sounds like you bought it right. You didn't mention the rent amount. Just make sure you don't over-build it for the rent you expect to receive. Rehab the easy units first and get them on the market while you focus on the gutted ones last. Good luck with it.