8-unit Vs. 16-unit Apts Vs. Condos
Here's the scoop.
The developer I'm working with has pretty much given me free reign on this project. Great learning opportunity. I'm very excited.
The property I am working on is 2 4-plexes with 5Bd 2Ba in each unit. He was thinking to turn one of the bedrooms into a family room & turn them into 4Bd 2Ba condos. My idea is to turn them into 2Bd 1Ba apartments due to the type of tenants and the area.
I'm having a little trouble figuring out which way would be the best rout to take because I don't have access to the previous owner's Schedule E. (Besides, the scenario would be changing anyways. No matter what, we will not be leaving them the same as they are now)
Are there any formulas that you use to analyze the cash flow potential for apartment complexes?
I already have a pretty good idea of what the condos would sell for & how much the remodel would cost.
Now I need to approach the situation from the other side. I may already have a buyer for the property if it is changed into a 16-unit complex. But I need to have some cash flow figures.
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