16 unit multifamily feedback

[Dominique Mitchell]

Hello All.

I currently came across a 16 unit apartment building that needs ALOT of work. It will be a full gut rehab, my contractor is thinking around 300k-400k. The current sale price 65k. The building ranges from 1bed to 4bed. Average rents in the area are about 500 to 800 a month.

I am a new investor and want to know first should I listen to none investors when they say don’t bother with it?

Gross rent multiplier, if I understand it right could give me pretty good value on the building.

As far as financing I want to use a USDA loan, this is a rural area property. So it should qualify.

Or would a hard money lender be a better option?

I have a lot of questions, I’m just looking to get pointed in the right direction to start

Thank you all in advance.