Duplex 1:1 and 2:1 needs total rehabilitation.
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would you do this?.
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Stephen Dallas, I am confused by your last comment about selling for $100k/$80k.
Rehab doesn't bother me at all. In fact in this market, the only deals I see making money for those that don't have full time teams of salaried laborers are major rehabs. Last two pojects: 80k purchase, $115k rehab, $270k sale. $200k purchase, $400k rehab, $800k appraised value (living in this one).
Now onto your numbers: $40/mo repair will not cover your turnover costs, let alone anything else that comes up. You have no Capex budget at all, but the truth is: roofs, kitchens, HVAC all need replaced eventually even if they are new now. A new roof today that costs $6k to replace (probably more in 30 yrs), but you can either budget $16.67 every month for 30 yrs, or budget $100/mo for 5 years prior to needing replaced, or hope to have the cash available when the inevitable day arrives.