Do these numbers look reasonable?
Looking to Wholesale 123 Main Street I came in contact with Please see the information below Thanks! Tell me what you think!
3 Unit
1 – 1 Bedroom
2 – 2 Bedrooms
Single Bath in each
Exterior Great Condition
Interior needs minor painting/Cosmetic
Previous Owner Paid 40k in 2008
Tax assessment – 40k
It is a distressed neighborhood but decent property for that neighborhood. Some vacant Building on the block may bring down the assessed value of the property. Owner wants to sell but I haven’t offered him a price. I say try to lock the deal in for 35k and flip it to someone who is interested in cash flow for 40k. Please see the numbers below. I know there is too many variables in the real estate market to determine what is a good deal or not. But a lot of investors around here invest in these type of properties.
COMPS on the same street
| Three Family Year-Round Residence(230) | 2,724 | 8/8/2003 | $48,000 |
| Three Family Year-Round Residence(230) | 2,400 | 12/9/2005 | $20,000 |
| Three Family Year-Round Residence(230) | 1,894 | 8/26/1998 | $55,000 |
| | |||
| Three Family Year-Round Residence(230) | 2,100 | 8/29/2006 | $82,000 |
The Building Im looking at is about 3500 Sq Feet Last Sold for 40k 2008
Offer $35,000 Flip for $40,000 – See Below
3 Unit x $600 Per Month = $1800
1 Monrh Vacancy Per Unit $600 x 3 Unit per month= ($1800)
Annual Gross Rental Income $20,000 Per Year
Property Tax$126 Per Month x 12 - $ 1512
Maintance Cost $400 Per Month for all 3 units12- $4800
Annual Net Operating Expenses $$6300
Annual NOI
Annual Gross Income – Net Operating Expenses
$20,000-$6300 = $ 13700in Cash Flow
Return on Investment (ROI)
CashFlow /Investment Basis ($3000 in additional repairs)
$13700/$4300 = 31% Return
What do you guys think?
Thanks,
Adam C