5 duplex purchase question

[Bruce H.]

Dear Friends,

I need some context with a decision. There is a parcel with 5 vacant duplexes for sale, totalling 10 units. 4 units are 1 bedroom, the other 6 are efficiencies. It is on the water and is a quiet dead end street. The building are all block, are individually metered and are connected to a county maintained low pressure sewer system. One of the buildings needs a roof and all need a complete remodel. The seawall needs repaired and I got a quote from a marine contractor that quoted me $30,000. It is a bank REO. They are asking $228,000. FMR for an efficiency from HUD is $605 in my MSA. I was thinking of making this a 55+ community with HUD/Section 8 as a back-up if I don't attract market renters. I would like to get them purchased and remodelled for $25,000/unit as my net will likely be $500/unit. I will likely do RUBS for the water, but pay for the sewer and garbage myself. I'm offering $175,000. I am putting down 20% and will be doing my best to pay for the seawall and rehab which might include my credit cards. It is in a low lying area, zone AE in Florida. My banker is noncommittal until he sees the survey and elevation information, but I think I want to pursue this even though it is low lying and may start shopping the Fannie/Freddie lenders even though this may be small fry for them. Is this deal reasonable?

Thanks for any help you can give me.