There is a building close in my area that is 13,000 square foot with 17 units. All are 1bd 1ba. The building can be purchased for 90k from the bank. 20 units on the street at 11,000 square foot is selling for $570,000. My question is how much do you experienced rehabbers think it will cost to rehab. Here are a few more facts.
West side of Cleveland (mid to low income area)
Printout says each unit needs rehabbed
Looks on the outside to be fine except needs updated windows throughout.
Rents in this area are from 400-500 a month
Now I know there can be big expenses you may not forsee such as the heating system but can you let me know a low and high end number on how much you think it would cost? I want to evalutate it myself obviously but just asking for a ballpark. If anyone has rehabbed this many units before Id love to hear from you.
I am hoping the numbers can look like this…
85-90k purchase price
500k after repair value
225-250k potential profit
Does this seem reasonable? Am I lowballing the rehab? Let me know your imput and if this is a good deal. Ill update you on any due dilligenceof my own.