Buying a run down multi family with asbestos

[Mitchell Palmer]

Hi All,

I have been following along with the BiggerPockets podcast over the past two years. I recently graduated, finally have some income, and have been saving up for a downpayment. I have toured a couple of homes that I was able to find within my price range. My max price point is $390k. I recently found a multi family that looks like it could work for my first rental property. There are tenants currently living in the property paying rent that would like to stay. The property would not cash flow at the current rents, and I wouldn’t have enough funds to rehab the property right away. Lastly, the home has asbestos siding that I would eventually want removed. I will be touring the property for the first time this Friday, but have had my eye on it since it was listed. It has been on the market for 59 days and counting. I know it’s hard to say without seeing a property for yourself or running the specific numbers, but if you were me facing these circumstances what would you do?

[Caleb Brown]

@Mitchell Palmer

What’s the break down of the numbers?

Estimated rehab

Rents after rehab

Holding costs

These are the major items, most likely you’d need to partner with someone if it makes sense. It might look good glancing at it but you need to review the numbers before doing anything.