Property
HOT OFF MARKET 4 Unit In A+ Condition
3800 Southwood Dr. Racine, WI 53406
$450,000
Pricing/Terms Explained
$112,500 Per Unit
** Buyer's Premium Waived
12
Beds
4
Baths
4,974
Sq. Ft.
1968
Yr. Built
100%
Occupancy
8
Spaces
2
Stories
Forced Air
Heat
Separate
Laundry Per Unit
Street
View
Contract Copy
Buyer's Agreement
Property Summary
Type
Multifamily
In Place NOI
$23,000
Target CAP Rate
-
Today's Market Value
-
Target Purchase Price
$450,000
Units
4
Projected NOI
$39,400
Market CAP Rate
-
Value w/Market Rents
-
Cost Per Unit
$112,500
Investment Strategy
Purchase at target price with 20% down payment. Upon lease expirations, raise rents to market rate. Refinance and pull cash out based on higher value of the property.
About The Property
Incredible opportunity to pick up four rowhouse-style units in beautiful Racine, Wisconsin. The fourplex consists of all 3-bedroom units, each with its own basement. Two of the units were built as an extension in 2006 and the other 2 have undergone a recent full remodel. The mechanicals including the furnace and boilers are relatively new and in excellent condition. The building comes with 10 parking spaces and is located on a corner lot within a quiet community. The property is strongly rented however there is an opportunity to raise rents given the lack of high-quality rental options currently on the market in the area
About The Neighborhood
Racine is mid-size coastal town in southeast Wisconsin, 22 miles south of Milwaukee and 70 miles north of Chicago. With a population of 78,000, it has a diverse economy of tourism, manufacturing and corporate offices. Multinational chemical company SC Johnson & Son is headquartered in Racine along with Dremel Corp, JI Chase and Reliance Controls Corp. Founded in 1834, Racine has distinct roots from Denmark with many immigrants settling in the area pre-WWI. Today the town is known for its Danish pastries as well as its vast outdoor areas including North Beach which was included in USA Today’s list of “51 Great American Beaches”. It is also home to several Frank Lloyd Wright buildings and large-scale shopping complexes.
Due Diligence
Documents
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Rents, expirations, security deposits, balances and more.
Utility expense, services, insurance, taxes, and more.
Who pays what - Landlord Vs. Tenant
Comparable multi family properties that have sold in the area.
Comparable multi family units that have been rented in the area.
Market report showing trends and insights.
Property
Financials
Purchase Price of Property
Property Current
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Year 2 Pro Forma
This column is based on a stabilized condition of the subject property. These inputs assume proper property performance by using our investment suggestions (proper management, bringing rents up to market rate, vacancy absorption, etc).
Debt Service
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Property
Performance
View the return metrics based on various inputs.
"Annual Net Income", "Monthly Cash Flow", "Cash on Cash Return", "Equity Value", and "Equity Multiple" are based off of the "Year 2 Pro Forma" column inputs.
Key
Metrics
Year by Year Property Data
Property Value
Remaining Loan Balance
LTV Ratio
Debt Service Coverage Ratio
Cumulative Net Cash Flow
Total Equity (Includes Net Cash Flows)
ROI
Annualized ROI
Equity Multiple
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