This is a subdivision of 9 individual parcels. Each parcel is .4 acres, and not possible to add more without spending lots of capital to meet city guidelines of a park. It’s a really nice setup, and well ran. Wooded and spacious, just a little far out, but only 10 minutes from the interstate.
Sales price is 600k
9 units rent average $900
Expenses are just lawn water taxes insurance 15000
Gross income 97200
The cap rate of 14 works but is valued at 66k per unit.
I know I probably could recreate this for 420-500k but it would take me a year, or two, and have to find the best deals. With the time it would take to develop this, I can justify the extra expense it’s just hard to pull the trigger on it. It would really jumpstart my portfolio but at the cost of debt.
Any thoughts, or words of encouragement?