First Deal: Too Big a Project?

[Brad Ball]

There are three 4-unit properties available in our market. Each unit is 2 BR/1.5 BA.

They are for sale individually but the buyer prefers to sell as a package because they are all on a cul-de-sac type arrangement. They have individual addresses, PINs and tax records, each with the same single individual owner. All three buildings are entirely vacant and have occupancy violation notices from the city. There is plenty of sign of exterior work and I don't have the list of violations from the city yet, but my conversation with the community development department says they are substantial. The property was again cited within this past month.

Asking price for each property is around $300,000. I estimate ARV around $450-500K with complete updates to each of the units. Rent should come in around $1,000 but maybe as high as $1,200 I think. They're in a good area with solid schools, SFRs, and nice local businesses/restaurants/shopping, etc. I don't have a handle on estimating the rehabs but I can't imagine it will be less than $100K for each property.

Question: Is a project like this - basically rehabbing 3 buildings and 12 units a viable project for a first timer. My wife and I have house hacked a duplex the last 10 years and have 'excellent' project/vendor management skills but don't know much about construction. (The city requires the work to be done by licensed professionals to get permits for the violation work so our lack of know-how may not be as big a deal; we're definitely ready to learn.)

The city contact told me there have been several request for the violation information about these properties in the last month so I don't know how much longer they'll be around. Our goal is to buy and hold rental property but this seems like a huge project, especially with no rehab experience.

Advice and thoughts on this situation welcome. Also any ideas about how to fund it are welcome. I was thinking about going conventional with three separate loans since they're all only 4-unit properties but don't know if that makes sense. Maybe looking for a portfolio loan would be good, too, because of the setup. Thanks in advance for your help here.