Sold $399,000 - 4-Plex
There aren’t too many multi-family residentials I am seeing out there at the moment that inspire me to write a great deal alert, but here is one.
There aren’t too many multi-family residentials I am seeing out there at the moment that inspire me to write a great deal alert, but here is one. I visited this one today, and here are the reasons why I like it:
a) I see lots of evidence of Lincoln Hts coming up very rapidly as a good location for income properties.
b) front house has a lot of charm and character. Could even possibly work for an owner-user. Also has about 275 sq ft of unpermitted space downstairs that is ‘code’ ceiling height, and would be terrific for any number of possible uses.
c) has plenty of off-street parking.
d) has good separation between the main house and the three back units.
e) all four units, including the house, are big. House is about 1200sq ft, plus the bonuse 275 sq ft downstairs. Each of the back units are about 800 sq ft.
f) all four units are being delivered vacant; so no pesky relocation fees to deal with, and one can charge current market rents once one completes the renovations.
I have the renovations at approximately $20K per unit in the back units, and then approx. $50K for the main house. Once renovated, I have the rents for the three back units at approx. $1300/mo per unit, and the main house at about $2100/mo. That totals $5K/mo income.
I doubt one could easily get financing on this one; so it needs to be bought either with all cash or with hard money. Once renovated, one could however easily convert it over to conventional financing. At that point, including down payment ($100K,) renovations cost ($110K) and closing costs ($10K) one is out of pocket approx. $220K. However, one will be netting approx. $3500/mo positive cash flow, after mortgage, prop tax, insurance, etc. That of course means a total of $42,000 annual net income, which comes to whopping 19% cash on cash return (!!), in a location that is rapidly spiraling upward and so will only (in all likelihood) appreciate in value over the next few years. Even if there is a bidding war that drives the price up a bit higher, it’s still an amazing deal.
If one (as owner) wanted to live in the main house, then of course they would spend more on the renovations for that main house. However, they would end up having the income from the back 3 units more than cover the monthly expenses to live there. Anyway, if this can work for you, or if you know someone for whom it does, get a hold of me right away. Offers must be in by Thursday.
