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- #116: Renovated 6-Plex Cash Cow + SF Premium Flip
#116: Renovated 6-Plex Cash Cow + SF Premium Flip
This week's issue: Kansas City fully renovated 6-plex with 17.7% CoC returns, misleading cap rate warning on historic property, San Jose half-acre development flip, and SF West Portal gut renovation with 499% ROI
Kevin
September 15, 2025
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Kansas City Indiana Ave - FULLY RENOVATED 6-PLEX CASH COW
đź“Ť Address: 3409 Indiana Ave, Kansas City, MO 64128
đź’° Price: $499,000 ($83,167/unit)
🏢 Property: 6 Units (All 2BR/1BA), Fully Renovated in 2024
🏦 Cap Rate: 8.0% Stabilized | CoC: 17.7% | Occupancy: 1 of 6 Units
Why This is a Great Investment:
Complete gut renovation in 2024 with all new systems at just $83K/door! With one tenant already paying $1,100/month and 5 vacant units ready for immediate lease-up, this Oak Park property offers instant value with zero deferred maintenance. The complete renovation eliminates typical multifamily headaches while providing immediate lease-up opportunity.
This is exactly what investors want - turnkey property with proven rents and upside through occupancy.
Current Performance đź“ť
Investment Metrics (25% Down) | |
|---|---|
Purchase Price | $499,000 |
Down Payment | $124,750 |
Purchase Costs | $14,970 |
Total Cash Required | $139,720 |
Stabilized NOI (Full Occupancy) | $52,666/year |
Current Cash Flow (1 unit occupied) | Negative during lease-up |
Stabilized Cash Flow | $22,030/year |
Stabilized Cash-on-Cash | 17.7% |
Lease-Up Strategy 🚀
Immediate Action Plan | |
|---|---|
Proven Rent | $1,100/month (current tenant) |
Target Monthly Income | $6,600 (6 units Ă— $1,100) |
Annual Gross Income | $79,200 |
Monthly Income Add | $5,500 |
Timeline to Full Occupancy | 90 days |
Lease-Up Economics | |
|---|---|
Marketing/Advertising | $1,500 |
Utilities During Vacancy | $900 |
Minor Touch-ups | $500 |
Total Lease-Up Cost | $2,900 |
Value Analysis đź’°
Replacement Cost Advantage | |
|---|---|
Land Value | $50,000 |
New Construction Cost | $594,000 |
Total Replacement | $644,000 |
Purchase Price | $499,000 |
Buying at | 77% of replacement |
Recent Renovation Value | |
|---|---|
New Roof | $15,000 |
New Electrical | $20,000 |
New Plumbing | $20,000 |
New HVAC | $18,000 |
Full Unit Renovations | $90,000 |
Total Seller Investment | $163,000+ |
Key Success Factors:
Complete 2024 renovation eliminates capex risk
All systems under warranty
Proven $1,100 rent with current tenant
Gated parking (major amenity)
77% of replacement cost
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San Jose Mount Pleasant - HALF-ACRE GOLDMINE FLIP
đź“Ť Address: 2145 Mount Pleasant Rd, San Jose, CA 95148
đź’° Price: $1,095,000
🏠Property: 4BR/2BA, 1,986 SF on 0.5 ACRE with ADU Plans
🏦 ARV: $1,590,000 | Profit: $190,116 | ROI: 147%
Why This is a Great Investment:
Half-acre lot in prime Evergreen Hills with ADU plans already approved! This 1930s home needs cosmetic updates to unlock $495K in instant equity, while the massive lot provides multiple development and exit strategies. The pre-approved ADU plans eliminate development risk and add significant value potential.
This represents both immediate flip profit and long-term development upside.
Flip Analysis (10% Down Hard Money) đź“ť
Investment Metrics | |
|---|---|
Purchase Price | $1,095,000 |
Down Payment (10%) | $109,500 |
Loan Points/Fees | $19,710 |
Cash to Close | $129,210 |
Renovation Budget | $110,000 |
Total Cash Required | $129,210 |
Profit Projections 🚀
6-Month Flip Timeline | |
|---|---|
Conservative ARV | $1,590,000 |
Total Project Cost | $1,399,884 |
Selling Costs (6%) | $95,400 |
Holding Costs | $62,824 |
Net Profit | $190,116 |
Cash-on-Cash ROI | 147% |
Annualized ROI | 294% |
The Half-Acre Advantage 🏗️
Development Potential | |
|---|---|
Lot Size | 21,780 SF (RARE!) |
ADU Plans | 1,200 SF approved |
Construction Cost | $200,000 |
ADU Added Value | $400,000+ |
Development Strategy | Build while renovating |
Multiple Exit Strategies | |
|---|---|
Quick Cosmetic Flip | $190,116 profit (6 months) |
Build ADU & Flip | $380,000+ profit (12 months) |
Hold & Develop | $7,500/month rental income |
Land Value Play | $600K+ land value alone |
Market Advantages:
Evergreen Hills premium location
Top-rated schools (tech executive target)
Half-acre lots extremely rare
ADU plans pre-approved (eliminates risk)
SF West Portal - PREMIUM LOCATION GUT RENOVATION
đź“Ť Address: 110 Forest Side Ave, San Francisco, CA 94127
đź’° Price: $1,295,000
🏠Property: 4BR/3BA, 3,563 SF Spanish Revival (Stripped to Studs)
🏦 ARV: $2,630,000 | Profit: $758,677 | ROI: 496%
Why This is a Great Investment:
Premier West Portal location with good bones - just needs finishes! This 1932 Spanish Revival is stripped to studs, making renovation straightforward with no hidden surprises. At $363/SF purchase price versus $738/SF conservative sale price, this represents exceptional value in one of SF's most desirable family neighborhoods.
The gutted condition actually reduces risk by eliminating unknowns behind walls.
Flip Analysis (10% Down Hard Money) đź“ť
Investment Metrics | |
|---|---|
Purchase Price | $1,295,000 |
Down Payment (10%) | $129,500 |
Loan Points/Fees | $23,310 |
Cash to Close | $152,810 |
Renovation Budget | $287,500 |
Total Cash Required | $152,810 |
Profit Projections 🚀
7-Month Flip Timeline | |
|---|---|
Conservative ARV | $2,630,000 |
Total Project Cost | $1,871,323 |
Selling Costs (6%) | $157,800 |
Holding Costs | $86,763 |
Net Profit | $758,677 |
Cash-on-Cash ROI | 496% |
Annualized ROI | 851% |
Renovation Scope 🏗️
Category | Budget | Key Focus |
|---|---|---|
Interior Systems | $287,500 | Drywall, electrical, plumbing, HVAC |
Kitchen (High-End) | $45,000 | Premium finishes for location |
3 Bathrooms | $40,000 | Luxury finishes |
Flooring/Paint/Trim | $33,000 | Quality throughout |
Permits/Contingency | $47,500 | SF permit process |
Market Validation đź“Š
Comparable Sales Analysis | |
|---|---|
Recent Sales Range | $900-1,200/SF |
Conservative Target | $738/SF |
Purchase Price/SF | $363/SF |
Instant Equity | $1,335,000 |
Direct Comp (Same Block) | $1,247/SF |
Built-in Safety Margin | $1.8M+ upside potential |
Risk Mitigation:
Stripped to studs eliminates hidden issues
Structure appears sound
Premier West Portal location
Conservative ARV leaves massive upside
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