68 unit Complex - 1st Multi Family Investment

[Eddie Delaney]

 I am a new member and we finally closed on my first multi family investment last week. It is 68 units in Orange Texas. It flooded  for the first time during hurricane Harvey. So it will need a complete interior rehab. The good thing is, that I have been working with other investors as a contractor to rehab their properties the last 15 years.  I have replaced several million square feet of siding and have probably 3 to 4,000,000 ft.² of roofing  covered in Houston and surrounding areas. I've been wanting to get into this business, but finally got an opportunity to do so. Although  I have great confidence in the construction side of this investment, we will be looking to get tips and ideas on how to best operate and run the property.  We purchased the property for 1.1 million. I estimate the  rehab costs to be close to 1.2 But we are going to do the exterior siding even though it doesn't really need it.  Looking to be the best product and best price for the area. Can anyone share what kind of margins we should be shooting for? Hoping to profit about 250K a year… Realistic? 

[Eddie Delaney]

thanks! @scottanderson. Since the flood, I have rehabbed my home and we are two months away from finishing up a contract of rehabbing 135 units that flooded. We got this rehab down...just never did it for my own investment. But yes Houston is closer to 60k plus for a nice property. I’ll post a couple updates on this as we go through the rehab. I wish i started this thread under a different forum..just realized.