They both have completely different gas, water and electric meters.

This includes some professional labor for the roof, siding and electrical(whole house- has some knob and tube, minimal outlets, needs hardwired fire alarms). 

Had to replace that 3ft wide strip where we pulled the wall out anyway.The thicker stuff was actually easier to remove with steady, multi-angled hits with a tile scraper. 

)                           -   Gross Monthly Operating Income              32,642.00 Monthly Operating Expenses Monthly Property Management Fees                   832.00 Repairs and Maintenance                1,000.00 Real Estate Taxes                5,241.00 Rental Property Insurance                1,959.00 Homeowners/Property Association Fees   Replacement Reserve                2,000.00 Utilities                1,291.00  - Water and Sewer    - Gas and Electricity    - Garbage    - Cable, Phone, Internet   Pest Control                   155.00 Accounting and Legal                   150.00 Advertising   Monthly Operating Expenses              12,628.00 Net Operating Income (NOI)   Total Annual Operating Income            391,704.00 Total Annual Operating Expense            151,536.00 Annual Net Operating Income            240,168.00 Capitalization Rate and Valuation   Desired Capitalization Rate 10.00% Property Valuation (Offer Price)         2,401,680.00 Actual Purchase Price         3,100,000.00 Actual Capitalization Rate 7.75% Loan Information   Down Payment            620,000.00 Loan Amount         2,320,000.00 Acquisition Costs and Loan Fees              60,000.00 Length of Mortgage (years)                          30 Annual Interest Rate 4.970% Initial Investment            680,000.00 Monthly Mortgage Payment (PI)              12,411.76 Annual Interest            114,527.10 Annual Principal              34,414.02 Total Annual Debt Service            148,941.12 Cash Flow and ROI   Total Monthly Cash Flow (before taxes)                7,602.24 Total Annual Cash Flow (before taxes)              91,226.88 Cash on Cash Return (ROI) 13.42% The property is being given to me after completing 40 year certification (updated plumbing, electrical, parking, most units are decently remodeled.

Remeber that you are not only being hit with the water bill but MDS is going to hit you as well.

All in all, I'm projecting approximately $3,000 in rehab per unit ($12,000) plus $6,500 in exterior work plus $5,000 to update the electrical with a $3,000 contingency reserve and a $2,000 management reserve - about $30,000 total.  

Many don’t want to deal with the hassles of redevelopment etc if they don’t have to .But if they are hit with a big take hike if Prop 13 for commercial is repealed then it’s going to set a fire under them to do something .

When the peak was hitting and harder to find deals all these types came out and talked about all the big returns they hit a few years ago.

Hopefully we can motivate and help each other to learn and maybe eventually do business together. hit me up if you are interested, lets discuss some real estate!

My partner does not think so because it is in an undesirable area, and, although property values are on the rise, this neighborhood will be the first to take the hit and go back downward when/if the market tanks again.