Additionally, I negotiated that the seller do a new exterior paint job ($20k), $6,500 in landscaping, and $5,700 in deck work to transform the exterior to attract new quality tenants.

From there add the "approximate" additional costs for demo and prep, landscaping etc, and you would have your answer pretty quick.

Purchase price: $505,000 Cash invested: $125,000 Sale price: $550,000 Performed the following renovations:-Roof replacement-Converted doorway into an open archway-Kitchen replacement including flooring and moving and running water lines-Converted window into a patio door with patio steps-Lighting & electrical panel and fixtures-Painting exterior / interior-New Gutters-Carpentry-Landscaping

Primary residence is a coop that does not allow subletting.2. https://www.roofstock.com/inve...616 Wilbur Ave # 1Hammonton, NJ 08037Duplex2 bd, 2 ba | 1,108 sqft | Built in 1900Owner is responsible forRefrigerator, StoveTenant is responsible forElectric, Garbage, Gas, Landscaping, WaterINCOMERent$1,725Vacancy Factor- $86Expected Rent$1,639EXPENSESProperty Taxes- $292Property Management- $131Leasing Fees- $41HOA Fees- $0Insurance- $73Repairs & Maint.

I find it best to instead review costs based on scope category budgets 1st- ie kitchen/bath/open space/mechanicals/landscaping etc. then new construction shell scope budgets including pre-con.

Hi Jesse,Maybe Co-GP with someone who has successfully Value-added with re-habs on apartments of this size.Because based on this question, I'd say your chance of coming in on budget and on time is very low (especially with Covid shortages).Using an architect to help with color, landscaping, office design and decor, etc...might be worth it.This is a big project and in addition to handling the actual rehabs, you have to be concerned with your renters inconveniences, 7am chainsaws, water and electric shut offs, downed laundry faculties, pounding and buzz saws whirring all day long.You have to have a plan to appease their anger over this--or they will move out (when they would have stayed), increasing your turnover and decreasing your estimated cash flow.Having a management company that is familiar with re-habs might also be a help--some may also handle the re-hab for you for a (% fee).Good Luck!

However, the more hands-on you are and the better you know the property and avg vacancy rates the more you can adjust these numbers.For example, in terms of expense, if I'm looking at a townhouse where the HOA covers the roof, siding, landscaping and I know the HVAC and appliances are pretty new I'm assigning a lot lower expense to repairs & cap-x.

The 1400 sq ft single family home next to our primary has been a rental for the last 8 years or so and part of a large portfolio with a professional management company and their tactic is to professionally landscape once yearly and put grass and snow removal on the tenants, so I know it's done both ways locally.

My calculations:_________________________________________________________Income:4 Mobile homes X $350 lot rent = $1400/month $1,400 X 12 = $16,8001 2bed/1bath house X $650 rent = $650/month$650 X 12 = $7,800Total Income = $24,600___________________________________________________________Expenses *Estimated:Taxes = $1,750 YrInsurance = $1,500 Yr*Landscaping = $1,200 Yr*Utilities = $850/month = $10,200 Yr*Maintenance = $25/month X 5 units = $125 X 12months = $1,500 Yr *Capita Expenditures = $35/month X 5 units = $175 X 12months = $2,100 YrTotal Expenses = $18,250_________________________________________________________Net Operating Income:Total Income / Total Expenses = Operating Income Percent$18,250 / $24,600 = 0.741 - 0.74 = 0.26 = 2.6%Net Operating Income Ratio = 2.6%______________________________________________________Cap Rate with current asking price:Cape Rate = NOI / Property ValueCap Rate = $6,350 / $260,000 = 0.025Cap Rate = 2.5%___________________________________________________________Cap Rate with $100,000 offer:Cape Rate = NOI / Property ValueCap Rate = $6,350 / $100,000 = 0.0635Cap Rate = 6.4%__________________________________________________________Cap Rate with $60,000 offer:Cape Rate = NOI / Property ValueCap Rate = $6,350 / $60,000 = 0.1058Cap Rate = 10.6%_________________________________________________________Cap Rate with $75,000 offer:Cape Rate = NOI / Property ValueCap Rate = $6,350 / $75,000 = 0.0846Cap Rate = 8.5%

We increased the curb appeal, put in landscaping and turned a 3rd of the garage into a gym, adding custom touches to make it comfortable.