12-door [Calc Review] Help me analyze this deal
first - the title is wrong: there's 12 doors, 8 buildings.
next - i've run the numbers at current rent roll and estimated repairs plus cushion (because, really, how often does a rehab exactly match estimate at purchase?). the result was negaive 400/month cashflow. then i ran the numbers at average rent for the area with same rehab budget. the result was positive 800/month cashflow. the reality will be something in the middle, right?
also, i'll likely loose those tenants due to rent increase and rehab logistics. there is currently 1 vacant unit in the duplex, but everything else is rented. six units have been rented to the same tenants for 2-8 years. the other two units for about 8 months each. I'll have to review the leases for rent increase language.
i'll have to carry the units while under repair, most likely, then rent the out asap-to the 'right' tenants (i.e. one's that can pay the rent and take some care of the property). the carrying cost is not currently in my budget here - should i estimate that and add it to the repair estimate for this analysis?
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