Property Analysis of a $700,000 10-Plex

[Keenan Fitzpatrick]

This multi-unit property is listed at $700,000 and boasts a monthly gross rent of $10,150, making it a lucrative investment opportunity. Estimated monthly utilities are currently at $1,750, but I recommend verifying this with the utility provider to ensure accuracy. It's possible that the estimate is slightly lower than the actual costs due to missing readings for one of the gas meters and the lack of a reading for an electric meter.

To maximize the rental income, I recommend making the onsite washer and dryer functional and offering storage units that are not currently being used by the tenants. Adding these two amenities will help minimize turnover with the rent increases and generate an additional $200/month. Additionally, installing cameras and restricting access during normal hours will ensure the security of the laundry and storage areas.

The garage is also currently vacant and can be rented out for an additional $150 per month.

Below is a breakdown of the rental units and their current conditions:

Unit 1: 3 bedrooms, 6-month lease, currently rented for $1,250, but I believe it can be increased to $1,350.
Unit 2: 3 bedrooms, month-to-month lease, currently rented for $1,350.
Unit 3: 1 bedroom, month-to-month lease, currently rented for $800, but I believe it can be increased to $1,050.
Unit 4: 1 bedroom, lease expiring in August 2023, currently rented for $1,000, but I believe it can be increased to $1,050.
Unit 5: 1 bedroom, currently vacant, but can be rented for $1,050.
Unit 6: 1 bedroom, month-to-month lease, currently rented for $800, but I believe it can be increased to $950 as is, or $1,050 with renovations.
Unit 7: 2 bedrooms, month-to-month lease, currently rented for $1,000, but I believe it can be increased to $1,150.
Unit 8: 2 bedrooms, lease expiring in November 2023, currently rented for $1,400.

Unit 9: 2 bedrooms, month-to-month lease, currently rented for $900, but I believe it can be increased to $1,100.
Unit 10: 2 bedrooms, month-to-month lease, currently rented for $800, but I believe it can be increased to $950 as is, or $1,400 with renovations.

I have attached an analysis of the property's current cash flow and projected performance after making the suggested improvements. The current cash flow is promising, and the renovations will pay off exponentially in the future. While there is still work to be done, much of the heavy lifting has already been completed.