I have the following under contract, and the potential return is outlined as follows.
Fix & Flip Scenario:
300 E Broadway price $110K
Size = 3,564sq.ft.
ARV = $275,000
Rehab estimate = $100,000 based on retail prices.
Assignment fee = $10,000. $10,000 due to the ARV.
$110K is the best price offer for us (investors).
Each unit is 2 Bedroom/2 full baths
* sq ft complex or $30.86/sq ft.
Comps are $72 to $107/sq ft on 4-plexes in the area. Therefore, the ARV ranges from $256K to $381K.
Repairs total $75K - $100K. It's a gut job with wiring, plumbing & 4 HVAC systems, kitchen repairs, and construction disposal included.
Buy & Hold Scenario:
Average 2bd/2ba rentals in the area are $600 - $700/month.
Operating Expenses including monthly management fees, landscaping, utilities, insurance, taxes total approximately $7,880
NOI = $22,120
Cap Rate = 10%
ROI annual = 12%
The discount forms a great opportunity. $2,000 earnest money is due tomorrow, August 24 by 5pm. Two other buyers are waiting if you decide to go another direction. My additional contact information is below