2526 Adams

2526 Adams is a 10-unit value-add property built in 1948. It is all 1BD/1BA units roughly 567 SF. The property has had extensive capital improvements in the last 6 months, including roughly $40,000 spent on foundation piers, and another $40,000 spent on painting, new concrete pads, plumbing repairs and unit turns. The average rent is $949/month. Similar units in the area are renting for $1,125/month. The average 1BD in a 3-mile radius of the property is $1,200. There is therefore a value-add opportunity available by taking the rents to market. If a new owner were to take the units to $1,125, charge $100 for utilities, and expenses were $3,371/unit per year, the property would be a 7.49% cap rate at the asking price of $1,400,000.