hi guys i've found a property which needs renovating, and which can be subdevided and a three bedroom unit built out the back. Planning on renovating the front house rent it until end of 2008 then re evaluate, whilst also building a place out the back which i'd like to keep for at least five years. Having done a thourough analysis on the property it returned the following figures.
CASH IN:Improved Property value = $535000.00
Rent profit after PM fees = $9360.00
Total sub-division profit = $-8800.00
Total actual money you receive back = $535560.00
Total expenses = $476824.80
Profit made before tax = $58735.20
Cash on Cash Return = 53.08 %
Cash needed to start the project = $110660
Total Cash Back = $169395.20
Duration of project = 12 MonthsThe cash on cash return makes it look good but the Return on cost is only 12% which apparently should be 20%% any thoughts
The above figures have been done based on selling upon completion
You must be logged in to reply to this topic. If you don't have an account, you can register here.
