Rental Property in Odessa Historical Center on Pushkinskaya St. near Grecheskaya St.

2nd and 3rd Floors for sale at a price of $2,500 per square meter:

• Each Floor is 370m2
• Total space available 740m2
• Price per floor: $925,000 (Each floor may be purchased separate.)
• Total price for both floors: $1,850,000

Business Plan Example for Renovating this Property to Rental Units:

Typical renovation costs ranges from $400 to $600 square meter.

• Purchase 740m2 of property for $2,500/m2 (Total cost of $1,850,000)
• Renovation of the property at a cost of approximately $500/m2 (Total cost of $370,000)
• Conservative estimate on renovation completion time is 1 year
• Total completion costs approximately: $2,220,000
• Conservatively the average increase in property equity ranges from 20% to 30%
• Taking the lower rate, the Return on Investment from equity will be approximately $444,000
• Total property value after completion: $2,664,000 (Including 1st year's equity.)
• Creation of 13 separate rental units. (Each one approximately 50m2 in size.)
• Estimated occupancy rate of 200 days per year at a price of $70/night
• Estimated yearly income from rentals: $182,000/year
• Total Return on Investment the second year approximately: $626,000 (Equity + Rentals)
• By this estimate the property will pays for itself within 3.5 years.
  
• Please consider that there are no property taxes in Ukraine.
• Please consider that the income tax rate is extremely low.
• Please note that all amount will be halved if only one floor is purchased.
• Please note the above business plan is only an estimate, actual returns may be greater or lower.

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