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Updated about 11 years ago,
Is this a good deal?
I working with an old landlord to sell his property. The property would be for $65,000 and the ARV after repaired would be approximately $428,000. The building is completed gutted and estimate for repairs is approximately $180,000. It is a multi family of 8 units in a great upcoming neighborhood. With a 12% vacancy rate and $550 for rents (Rents could be easily $600 a month for the location per rent o meter) With my calculations:
Total ROI: 24.32%
Cap Rate: 14.03%
COC: 19.09%
Any thoughts appreciated...