The property located at 218 Lewis St. is a commercial property available for purchase at a discounted price.
The property located at 218 Lewis St. is a commercial property. The building is approximately 1,530ft and is broken down into 2 sides. One side is currently rented for $295/mo and has been the same rate for the last 16 years. The property needs about $25 - $30K in repairs. This includes paint (interior & exterior), 1 new hvac unit for vacant side, ceiling replaced, update baths, update flooring, etc. Has natural gas and a solid infrastructure.
After repairs, both sides with rent for a minimum of $500 each. With a purchase price of $21K and $25-28K in repairs, you can be all in for approximately $46 - 49K.
Here's how the numbers will look:
Price + Repairs: $49,000.00
Net Operating Income (Annual Gross Income - Annual Expenses): $6,000.00
NOI/Price = Cap rate
$6K / $49K = 12%
A Cap Rate of 12% will provide you with a generous return.