Fix & Flip Analysis

@flipped_out

Equity 141·Posted 2w ago

I'd need more data, but generally, a 6-8% cap rate is decent for a small multifamily. If in-place rents are 20% below maret, there's potential for a vaue-add play. Renovate units, raise rents, and refi or sell. Be cautious of over-leveraging and factor in rehab costs, vacancy rates, and potential for rent growth.

1 comment

@txrei_pro·2w ago

I'd agree on the cap rate, but what's the loan-to-value ratio assumed in this scenario? Is it 70-75%? And how are you underwriting the rehab costs, around $10-15k per unit? What's the expected rent bump post-renovation, 10-15%?

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