Meh City but Good #'s on MultiFam Analysis - Holyoke MA
Hello all,
Here is a property I have been going back and forth on if I want to offer on. I am a new investor looking for a buy and hold multifamily purchased with an FHA loan that I will owner occupy and manage until I can find another in order to start to scale. I am looking for at least 10% coc and at least $100 cashflow per door.
This is in Holyoke MA. 2 unit top/bottom with 3 beds 1 bath in ea. all updated and move in ready. Newer mechanicals (2 yrs) and both units seperately metered. 2 sets of Laundry units in basement in seperate room.
The kicker! The basement is finished and would make a great studio/1bedroom. It has a finished bathroom but no kitchen and no heat but two points of egress. I would need to put in a seperate electric panel for the third unit as well as HW heater, electric baseboard heaters, kitchen, and anything else to bring it up to code.
The property is zoned as a 2 family but would not need to be re-zoned, would just need architect plans drawn up and submitted to the city in order to have legal third unit.
Exterior needs new siding, front is brick but rest is wood shingles, would replace with vinyl.
My concerns are that Holyoke is not the best city, not very good schools and high crime in the downtown area. This property is not in that area and looking through the police reports shows little to no crime in the neighborhood and no violent crimes. Would be very diligent in my screening process.
Analyzed as if I was moved out and getting income from all 3 units
Numbers:
Price: $340,000
Beds: 7
Bath: 3
Size: 2790
Loan: FHA, 30 yr,
DP: 3.5% (11,900)
I: 2.6%
Rehab:
$20,000 ( siding, electric baseboards, HW heater, Sink, Stove, Fridge, Cabinets/counters)
Not terribly familiar with rehab costs and cant get free quotes cause I don't own...
Income:
Unit 1: $1300
Unit 2: $1300
Unit 3: $900
Expenses: Monthly
P+I: $1313
Taxes: $389
Ins: $327
Owner Utilities: $105
Repairs: $245
Vacancy: $175
Management: $350
Capex: $175
NOI: $20,802
CoC ROI: 12%
CashFlow: $420/ month
You all rock and I thank you in advance for any comments!
If you are local feel free to reach out and we can chat about REI
Here is a property I have been going back and forth on if I want to offer on. I am a new investor looking for a buy and hold multifamily purchased with an FHA loan that I will owner occupy and manage until I can find another in order to start to scale. I am looking for at least 10% coc and at least $100 cashflow per door.
This is in Holyoke MA. 2 unit top/bottom with 3 beds 1 bath in ea. all updated and move in ready. Newer mechanicals (2 yrs) and both units seperately metered. 2 sets of Laundry units in basement in seperate room.
The kicker! The basement is finished and would make a great studio/1bedroom. It has a finished bathroom but no kitchen and no heat but two points of egress. I would need to put in a seperate electric panel for the third unit as well as HW heater, electric baseboard heaters, kitchen, and anything else to bring it up to code.
The property is zoned as a 2 family but would not need to be re-zoned, would just need architect plans drawn up and submitted to the city in order to have legal third unit.
Exterior needs new siding, front is brick but rest is wood shingles, would replace with vinyl.
My concerns are that Holyoke is not the best city, not very good schools and high crime in the downtown area. This property is not in that area and looking through the police reports shows little to no crime in the neighborhood and no violent crimes. Would be very diligent in my screening process.
Analyzed as if I was moved out and getting income from all 3 units
Numbers:
Price: $340,000
Beds: 7
Bath: 3
Size: 2790
Loan: FHA, 30 yr,
DP: 3.5% (11,900)
I: 2.6%
Rehab:
$20,000 ( siding, electric baseboards, HW heater, Sink, Stove, Fridge, Cabinets/counters)
Not terribly familiar with rehab costs and cant get free quotes cause I don't own...
Income:
Unit 1: $1300
Unit 2: $1300
Unit 3: $900
Expenses: Monthly
P+I: $1313
Taxes: $389
Ins: $327
Owner Utilities: $105
Repairs: $245
Vacancy: $175
Management: $350
Capex: $175
NOI: $20,802
CoC ROI: 12%
CashFlow: $420/ month
You all rock and I thank you in advance for any comments!
If you are local feel free to reach out and we can chat about REI