@Robert Schumacher Great thoughts here.
At current rent, it doesn't cash flow with 100% financing, at least not conventionally. Would have to do owner financing to make that work at a low interest.
My current capital is tied up in 3 other deals. One is scheduled to close next month. The second is wrapping up right now and should be listed by the end of the month (just had a tile issue that set us back a week.) My third deal is a limited partnership on another flip that should be listed by the end of the month as well. So I have capital, just no access right now, which is why I'm trying to find a way to make this work without.
Once I get the property my plan would be to renovate as the units turn (non-renewing as needed). I would spend about 10k each unit. Rouged vinyl plank floors for longevity, appliance updates, limited drywall and paint repair, etc. I'm a GC so I can do the work myself to save on costs.
I would also look at reducing the expenses to increase the NOI. Based on the average rents and looking at the last units that sold, all at around a 5.5 cap, I could increase rents to 1200-1300 easily. I think I can do 1400, but will be checking with local property management on that on Tuesday. If I only increased the rent I could sell it at a 6 cap for 1,759,000. That would be about a 300-350k profit once rehab, loan costs, and selling costs clear.
If I hold it, using a lender that allows for interest only rental loans, I'd cash flow about 3k a month. Using a conventional loan, that would drop to about 1500. That is assuming I buy at listing price.
There is no rent control in the area.
