Here's a breakdown of the situation:Current Occupancy: 80% (16/20 units occupied).Current Gross Rent Roll: $14,265/month.Market Rent Potential: $17,665/month (100% occupancy).Renovation Needs: 15 units require full renovation ($10K/unit), 4 units are 75% renovated ($2.5K/unit), totaling $160K in renovation costs.Vacancy Loss: $41,820/year in lost income due to current vacancies.Cap Rate AnalysisThe seller lists the cap rate as 9.59%, but this is based on the projected NOI of $119,858 (assuming full occupancy and market rents).

Renovation cost is roughly $30K.I guess what throws me off is that you say Cash invested: $60 

Hi Jonathan,Congrats on your first big renovation deal—it’s an exciting challenge!

Hey Gene, for your situation, you probably need to get a fix&flip loan to acquire and do the renovation.

Purchased on 4/19/2024 for $20,000, we invested $45,000 in strategic renovations to transform the property.

You can 100% use an FHA-203k renovation loan on multi-unit properties up to 4 units. 

@Matthew Cook I would NOT pay for the renovations unless I was on title or had a very formal contract written about the split of profits.

With $65,000 invested in strategic renovations, we transformed the home by modernizing key areas and enhancing its curb appeal.

Here are some key takeaways from our experience flipping homes and running a renovation business in San Diego.1.

We had a flip where we were doing a complete gut renovation.