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Updated almost 7 years ago,
Is this a good deal on 4 units?
Is this a good deal. Should I go for it? Up for sale are 4 units on the same lot. One is a single family home recently rented for $725/month. The other unit is a vacant 3 unit building. Full rehab of all 3 units is going to cost 60,000. Aquisition 90,000. All in at 150,000, I'd have the potential to have the following income from four units.
$725- Single Family House (Already Rented, Little Rehab Needed)
$800- Three Bed 1bd/1ba Unit (15k rehab)
$650- 2 Bed/1bath Unit 2 (15k rehab)
$600- 2 bed/1bath Unit 3 (30k rehab)
I can get a purchase loan from a community bank at 75% purchase and 75% rehab retroactive. Hard to know what the ARV is on this type of building because most of them sell off market in my area and are in pretty bad shape when they sell. Can I BRRR This and get alot of my money back out of it after it's fixed. Suggestions?