13 unit apartment complex
Wholesale Price: $250,000
Estimated Rehab: $10,000 per unit
Gross Rental Income: $83,700
- 2 studio @ $450/mo each = $900/mo
- 7 1 bedroom @ $525/mo each = 3675/mo
- 4 2 bedroom @ $600/mo each = $2400/mo
Needs some work but will easily bring in a great return year after year. 5 units currently rented leaving 8 which need to be rehabbed prior to anyone living occupying them. Excellent access to the 10 freeway and less than 10 minute drive to UofA. Local area going through upgrades with a big shopping plaza (restaurants, starbucks, shopping etc) being developed on the other side of the freeway (3 minute drive from the property). Currently has a property manager/handyman living on site.
Taxes - $3300/yr
$83,700 X 90% (occupancy) = $75,330
$75,330 - $3300 (taxes) = $72,030
$72,030 X .98 (2% annual maintenance - which should be nothing for the first few years at least, if the rehab is done right!) = $70,590
**Variable costs such as Insurance and Cost of Funds are not able to be factored in to these numbers.
$70,590/$380,000 = 18.57% NET CAP RATE!
$83,700/$380,000 = 22.02% GROSS CAP RATE!