Brick Fourplex in the Path of Progress
Value Add Opportunity
We bought this one in a package of multifamily, and we are offering it as a single property. Right now, three of the four units are rented and performing at $400 a month, the fourth is occupied, but not-performing. The value add opportunity is to transition these large 2 bedroom units which are currently leased through September and well below market, to full market rent leases. Since tenants pay all utilities except water, the expense ratio is low. These units will rent for upwards of $650 per month, see this comparable rent report for data.
8768 Mackinaw Street, Detroit, MI 48204, USA
- Value add play - below market rents
- Strong rental market
- In the direct path of progress
Here is a link to a property value report, and a link to nearby, recent, and comparable sales of four unit multifamily buildings.
Our projections based on past projects of similar properties and current project data, while not guaranteed, are presented for your consideration.
- Initial investment: $100,000
- Additional capital for transition: $20,000
- After transition value: $160,000 or more
- Conservative capital gains projection in twelve months of 33% on the initial investment for a flip
- Long term hold cap rates in the teens
Detailed Performance Estimates
|PROFORMA||Mackinaw Current||Mackinaw Projected|
|Monthly Gross Rent||1,600||2,400|
|Annual Gross Rent||19,200||28,800|