Acquiring a building built in the 1930’s presents its challenges and opportunities. Both structurally sound and mostly remodeled when acquired, the building needed some TLC in the form of property management and a proper leasing program. A new central heating system was installed, and only minor other improvements were completed. However, leases were brought up to market rates, thereby increasing the net income and overall value of the building for a quick 22% return in 18 months.
- Aquisition Price: $845,000
- Amount Invested: $100,000
- Total Investment: $945,000
- Sale Price / Value: $1,150,000
- Profit: $200,000
- Total Return on Investment: 22%