Yes Friggin WAY!
We found a multi unit property in North Park that is….not so easy on the eyes. There are three total units, two of which are permitted. The tandem garage was converted into a 1 bedroom rental.
The reason I’m writing this blog isn’t just to tell you how cool we are that we found this investment deal, it’s to relay the investment strategy that you can use(or we can help you) on your own investments.
There are three potential strategies:
1. Clean the place up(paint touch up, heavily clean, update landscaping) and rent it out. At the current purchase price, the cap rate is around 8%. If you’re familiar with hold properties, this is a very good rate. Hold it, cash in, be happy.
2. Clean the place up(see ideas above), put about 25-30k into a slight remodel including kitchen updates, paint inside/out, new carpeting, finish updates, and other “value add” additions. With tenants out, the place cleaned up, and some professional photos, this investment can easily qualify as a flip netting almost a 25% annualized return.
3. This is the most fun option. Turn this puppy back into a single family home. This will be an extensive remodel with a potential add on to bring the “flow” back to the home. With this option you’ll create a new floor plan, design, kitchen, bathrooms, etc. The home was originally a single family residence so from a city standpoint things will be smooth. This remodel is projected to cost between 70-90k with a potential annualized return of over 30%. This is also a great option for an end buyer who wants to have an investor do the remodel for them.
Three great options. If you need our help finding you something like this OR maybe you want to buy this one, let us know!
Reach out to us!
Luke Middleton 858.228.7204 Luke@MiddletonGroupSD.com
PS. Here are some pictures of the property. B. e. a. Utiful!