SFR for Care Home Analysis - Buy or move on?
Fully remodeled single-level home on over 1/3 acre. Zoned to build 4-10 units. Newly piped natural gas, newly installed high-efficiency gas furnace. Year built 1958. Updated 2014.
List price: 349,000
Purchase closing costs: 6,500 (approx.)
Estimated repair costs: 10,000
Total Cost of project: 365,500
ARV: 250,000
Monthly income: 8,750
Monthly expenses: 6,583.21
Monthly cashflow: 2,129.72
Pro Forma Cap Rate: 11.19%
NOI: 40,889
Total Cash Needed: 86,300
COCR: 29.61%
Purchase Caprate:11.72%
ARV is low. Numbers state no equity until year 30. (I know, that should give me a big "move on!")
My question:
Buy and increase equity using the buildable land (putting in additional units for care home or other allowed zoned units. )
Appreciate any feedback. Thanks!