Please rate my evaluation: 3/2 1970 Condo STR

[Nicholas Curcuru]

NOTE: There is very little chance I will actually buy this, but I want to check to see how realistic my evaluation is. Up until recently, this was my primary option, but not so much anymore. I plan on using this to check my estimations and to use it to evaluate higher NOI/CoCR condos in Florida near my business and friends.

Middle-Georgia, small city, class C+ neighborhood with small 3/2 SFH's surrounding ~20 building condo complex, each building is a quadplex. Center of town, nearby city hospital/medical complex.

https://www.redfin.com/GA/Warn...

3/2 split level: 2/1 upstairs, 1/1 downstairs, none are en suite. 

Estimated renno/appliance costs: 

2x bedrooms LVP: $2.5K ($5/ft2 installed guestimate over 2br @ ~200ft2 each + $500 in noise treatment) 

2x bedroom low-profile ceiling fans w/lights : $800 ($250 labor + 150 fan 2x based on extra effort to locate mounting boxes, assuming they exist)

1x new shower/tub prefab insert: $3.5K installed (guesstimate) 

1x new toilet $400 ($250 standard 1-piece + $150 labor)

2x shower-head upgrades: $100

100% repaint : $5.2K (1600ft2 x $3.23 ft/2) may opt to do myself

100A breaker panel complete replacement & upgrade to 4-prong 220V dryer connection on other side of wall: $2k (guestimate, original panel is still present and 100% not staying)

Non-ancient washing machine: $750

LED light upgrades/replacements: $100

Kitchen cabinet touch-up + hardware + adjustments: $500 (guesstimate)

Outdoor storage room rehab (mold remediation, drywall gut + replace, leak repairs): $3K (total guess, it's like a 6x8 

Outdoor patio concrete pad & rail cleaning: $50 

Microwave: free =)

Lock replacements: $350 (schlagre encode + basic patio lock change) 

Keurig Coffee Maker: $150

Kitchen pots, pans, bakeware, utensils, cups, plates: $300 + donating my spare sets

Misc electrical work: $500 (replace light fixture, fix outlet(s), re-wire light switch)

RENNOVATION TOTAL: $22.2K or $27.5K with contingency

Furniture, linens, supplies: 

2x queen bedframe & box springs: $500

2x queen mattress: $800 

2x XL twin bedframe & box springs: $550

2x XL twin mattress: $550

6x nightstands: $750

2 full size, 2 half size dressers: $500

Mattress covers: $100

6 queen pillows, 4x XL twin pillows (1 spare 'set' for each mattress): $180

Bed sheets x 4 each mattress: $300

Bathroom linens: $200 (16 wash cloth, 8 hand towel, 8 regular towel, 8 washable floor mat) 

Metal outdoor patio furniture: $200

3-piece couch set: $700

50"+ TV w/ install: $600

Kitchen table + 4 chairs: $400

Misc crap (soap dispensers, wifi router, wifi thermostat, cleaning supplies, doormats, artwork, mirrors, lamps, air freshers, air filters, TP, etc.): $1000  

FURNITURE TOTAL: $7,280 or $10K with contingency

Other thoughts:

Kitchen cabinets have already been painted/hardware upgraded poorly. Given the cost of a full cabinet gut, this will be deferred until income to pay for it.  


Expenses: 
assuming zero negotiation buy @ 138,000 including closing, 80% financed 20% down PITI + Condo Fees, cable, sewer, trash, water: ~$1,050k/mo @ 5.75% APR 30yr fixed

Down payment: $27,600

Rehab budget: $27.5k 

Furniture budget: $10K

Monthly: Utilities: $100 power, $90 internet, $100 maintenance, $700 cleaning fees (7x times per month average)

Total Expenses: $65,100 cash + $2,040/month

Income: 

Identical comp (same condo model, different building) on AirBNB & VRBO $14.5K @ 64% occupancy over 161 days (AKA ~102 days rented @ $141/ADR) and also rented an unknown amount of additional time on furnished finder @ 1,600/month. https://www.airbnb.com/rooms/6...

Full time gross income: ~233 days @ 141 ADR: $32,853/yr or $2,737/moth completely ignoring furnished finder revenue. -7% in taxes inside ADR yields results in $30,553/yr or $2,546/month

NOI: ~$506 month or ~6,072 year.

CoC Return: 9.32%