Rehab cost over the top??

[Leah Robertson]

HELP!

We've purchased a triplex and we are hashing on the budget. Are we trying to do too much on the updates? Each unit is approx 600 sqft and we estimate around $900 per month. With just pain, toilet, and tub, we could just make it an okay unit. We are putting a washer and dryer hookups in each unit, fixing the side walk and getting landscaping (which is a must), taking out popcorn ceilings in 2 units (the other unit looks fine) bc there are stains and smoke smell. We bought it for $215k and ARV is hard to comeby bc there are no other units in the same neighborhood. If we could guess, it would be around $250/260k??? Speaking of neighborhood, this is in a million dollar neighborhood and you have a view of the water across the street through the neighbor's big yard and driveway. Btw, this is in NW Florida if you know the area and can give us insight on pricing. (Btw, we interviewed 3 contracting company and this one had the decent price and most honest).

So is this worth $35k??? plus possible another 4-5k if something goes wrong. The property itself is a solid slab. Tile throughout is good and we negotiated a new roof before closing. Is this worth the plunge?? Our cash on cash return on return on investment for 40k rehab is 10.6%