We took over management for an owner of a 4-plex this year from a company that was shutting down the property management portion of their business.

The on-paper profitability did not reflect the true potential of the enterprise, and I knew transformative action was needed.Approaching the four distant owners, I proposed a comprehensive solution—acquiring both the business and the property.

We're currently exploring housing opportunities in Long Beach, CA, and are interested in connecting with property owners.

Based on a rough analysis for a project timeline, I believe the total project can be completed in 5-7 months with the team I have available if we get involved in completing the work on the project.Deal Analysis as a whole - Actual Costs may be slightly different but estimates should be fairly closePost Construction Estimated Market Value - Lot 1: $379,000 Lot 2: $307,000 Total Estimated Market Value $686,000+- $102,000 - Cost to payoff HML & Previous Builder- $154,800 - Estimated Cost to complete House #1- $170,370 - Estimated Cost to complete House #2: Includes New Well/Septic $7500, Impact Fees $2100, Permits $1000= $427,170 - Estimated Cost to Payoff HML, Complete Construction on House #1, and Construct House #2+ $686,000 - Total Future Market Value- $20,580 - 3% Buyer Agent commissions as the current owner(Listing Agent) will be listing these properties without compensation- $2,538 - Real Estate Transfer Taxes- $1,500 - Settlement Costs Paid at Closing______________________________________________ $234,212- $27,900 - Payment to Seller for Down Payment made by seller to HML @ Origination (For her to break even)= $206,312 - Potential Return before any Interest/Fees/Taxes/EtcROI: 45.3%RoR: 68.9% PM: 30.07% Acquisition/Exit: 8 MonthsI've spoken to a few HM Lenders and ran rough numbers by them.

I've calculated the tenant-occupied vs. owner-occupied ratio and understand that for expenses that are for shared areas, that ratio would be applied at tax time to deduct. 

That sinking feeling when you win and no one else bid etc. like "uh oh".For the original poster, some thoughts to sell might consider seller financing as clearly this is not going to sell to owner occupant.

Texas recently passed a tax relief for property owners.  

A few points of explanation: (1) I'm trying to buy near where I live, so I figured mentioning the town I live in will make it clear I am local--hopefully a point in my favor, (2) I figured the point of verifying basic information is really to let the owner know I am not clueless and have done my preliminary research, and finally (3) I'm not sure all that I should verify on that initial call, as my primary goal is to walk the property and engage face to face with the owner.

Whether you're a prospective tenant searching for your next home, a property owner looking to maximize returns, or simply curious about the dynamic rental market, our property manager's expertise will serve as your trusted guide in understanding the intricacies of rent pricing and staying attuned to current trends.

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