Episode #38 - Deal of the week - 4 units in Cleveland

TL;DR

A discussion about a potential real estate deal in Cleveland with differing opinions on its profitability and potential return on investment.

Transcript

hello everyone and welcome thank you for joining us to learn from us podcast this week dunt-da-daaaaa we're doing another intriguing deal the week deal of the week deal the week listen we've been try was promised the song in the beginning it's a little teaser yeah thank you we're gonna get a jingle Paul and I are really in love with this idea Paul ... Read More

Key Insights

• 👻 The hosts have differing opinions on the potential profitability of the property, with one host believing it to be a good deal and the other having reservations.
• 📌 The location of the property is discussed as being in an area that has potential for growth and development.
• 👻 The hosts discuss the importance of accurately estimating rehab costs and taking into account potential renting prices in order to determine the viability of the deal.

Questions & Answers

Q: Who would this property be suitable for?

This property would be suitable for someone looking to enter the real estate market in Cleveland, particularly if they are willing to manage the property themselves and perform some of the necessary repairs.

Q: What are the potential rental prices for the units?

The hosts debate whether the units can be rented at a higher price than the current asking rental price, with one host suggesting $795 and the other suggesting $695.

Q: How much would it cost to rehab the units?

The hosts estimate that it would cost around $13,500 per unit to rehab the property, including kitchen and bathroom renovations.

Q: What is the potential return on investment for this property?

The hosts disagree on the potential return on investment, with one host estimating an IRR of 18% and the other estimating an IRR of 24.47%.

Summary & Key Takeaways

• The hosts discuss a potential real estate deal in Cleveland, involving a four-unit brick building with various unit sizes and a number of maintenance issues.

• There is a disagreement between the hosts regarding the potential rent that can be charged for the units and the overall profitability of the deal.

• The hosts explore different factors such as rehab costs, management fees, leasing commissions, and other expenses to determine the potential return on investment for the property.