Flipped 24 units so far and wrote a case study ...

[Salman V.]

I was hoping you guys could give me some feedback on my case study linked below: 

https://drive.google.com/open?id=1hhSGs7KprBE8m4Ci...

I have another 12 units for sale under contract - flipped it in under a year and will make over 100% return on cash. 

The goal is to take this case study to investors to set up joint venture deals.

Thanks,
Sal

[Sam Shueh]

I find your write up interesting. I have quickly looked at the write ups and suggest some changes as it was hard to follow through the numbers written sideways in the spread sheets and messaged conveyed.

While I am familiar to most of your terms, I like you consider using the following format as that is more popular by the investors. I may suggest you to rotate the spread sheet such we can review data easier. 

Most investors will want more analysis on mortgage, interest and cash flow, insurance, property tax etc(Cook Co rate is not low). If you assume 2% vacancy you assume it needs no remodeling and can be rented out the following week. That is more difficult to attain.

If you assume a 20% rent annual increase you imply all tenants will not stay, then you should use 100% vacancy after first year.  If you want them to stay use something more reasonable.

You need to assume appreciation rate based on past data for buy and hold scenarios. All charts should be $ per units not total dollars. Property management fee should be included as I am sure those owning 100 units will not want to deal with them.

 If you want to sell investors the sweet spot location you should paint north shore Kenilworth, Winnetka, Cicero, Berwyn, Southside etc. with vital parameters they need to know.  The sweet spots should be quickly identified and understood. 

Good luck.  You are almost there.   

Expense (Yearly)	Other Financial Information
R.E. Taxes:	$30,625	Rental:	$89,940	Data Source:	Property Manager
Insurance:	$1,404	Vacancy Allowance %:	6%	Est GRM:	27.1000
Landscape:	$1,080	Other:	$450	Est Cap Rate:	1.8300
Maintenance:	$6,156	Other Include:	Laundry, Rents
Management:	$400	Income Gross Schedule:	90,390
Other:	$0	Income Annual Gross:	$88,582
Trash:	$1,200	Est Net Income:	$44,925
Utilities:	$3,192
Total:	$43,657

A few commentaries is how did you spend so little on upkeep for these multifamily units? My client just spent on $35,000 interior for an 3/2 condo with no exterior improvement handled by HOA. A 1 br, 1 bath partial kitchen, bath partial, flooring, painting costs $9K.