Commerce City Rehab Is Finished

Filed in General, Just For Landlords by on September 11, 2011 0 Comments

It has been over a week since out tri-plex in Commerce City has been complete. We got the project done very fast and already have the front unit rented. We will most likely rent the other two units within a week. We have a section 8 tenant for the front unit and the inspector said we needed a separate heat control for each unit. The best way to do that is to add a furnace in the attic. That was another $3,000 for the furnace and the duct work. Here is how the numbers ended up.
$88,000 purchase
$43,000 Rehab (including new sewer line)
$3,000 furnace
$134,000 Total

Rents:
$900 front unit
$700 basement
$600 back house
$2,200 Total (Annual $26,400)

$26,400 / $134,000 = 19.7% ROI

Almost 20% gross return not including built in equity, appreciation, or tax benefits.  The returns really go through the roof when you add in financing which I am leaving out since I don’t have the final financing in place.

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