I looked at a large yr 1900 building today. The exterior has been redone. The interior is completely gutted. No heating, no plumbing, but septic exists.
It is 3500 sq ft. Good location for a rental..not an OO, as you can see the highway from the top floor. It is 2 floors, and the basement, to me, looks like it could be another aptm - separate entrance, high ceiling, lots of open space. Roughly 1700 sq ft per floor, and basement has the same.
Now to bring this to a 3 fam, my rough first look estimate is 60k.
Rents in this area * conservatively * would be 800 per unit, for 3 units.
What would you pay for this?

The absolute max I would pay for $2,400 in monthly cashflow would be $120,000 less repairs. That's just a rough estimate and I would certainly do a cash flow analysis. So, in this case (with $60K in repairs), $60,000 would be the absolute max.

Mike

Is the existing building zoned as commercial property?

oh - this property got scrapped. Turns out it was a rec hall and the town really wants to keep it that way, and even to make it residential, I need a whole new septic.

Originally posted by "MikeOH":
I would certainly do a cash flow analysis.

Mike,

When doing a cash flow analysis do you use a computer program or just run some numbers with a calculator?

If you do use software, anything specific you recommend?

John Corey

I use a calculator.

Mike

Originally posted by "MikeOH":
I use a calculator.

Mike

Mike,

You sound old school just like me. I like working the numbers on a pad of paper with a calculator. Many times I do not even write the numbers down as I can tell enough with just a calculator. Granted when I started there were no real computers to use in most cases. You certainly could not take them onsite to run the numbers. The front seat of the car is where a lot of analysis gets completed.

Thanks for the reply.

John Corey

Corey, MikeOH, Minna you guys are great, reading everything i can.

Alice Crane