32 Unit Apt Complex, should I wholesale or keep it and rehab?

[AJ Hernandez]

Hi Everyone,

I am new to the forum. I currently own a 32 Unit apt complex free and clear that I picked up for a steal!

I have had many offers but at this point I am wondering if its better to keep it and rehab myself.  The income per month works out to be $14,000 per month (on the low end). I have bids for the rehab at $325,000.  I have a local Realtor in place to manage the property and the project if needed.  I can either make a quick $100,000 upfront for wholesaling it or make $170,000 per year. The issue is I have never owned a multi unit of this magnitude and don't know where to start. I am not sure even where to get the money to do the rehab. I would consider taking  a partner and going 50/50 but again I wouldn't know where to find someone.  I just don't want to sell myself short.  Owning the property would be ideal for me and my family's future. Please help!

[Account Closed]

Although far from my area of expertise - once the property has been rehabbed, I presume the taxes will increase significantly from its current $2,600/year?

As previously mentioned, should you proceed with the rehab, make sure it's with a contractor who is seasoned with this scale and type of work, and with the resources to perform it.  Regarding those bids of $325K for the rehab, were they provided from the cuff, or in response to a formal narrative Request for Proposal (RFP) outlining the project expectations and requirements?  Additionally, did their bids include the architectural, engineering, and other professional fees, along with all of the permitting fees required?  These can add up to a pretty penny.

Finally, if you decide to move forward on your own, I strongly encourage you to have a construction consultant on your side of the table to represent and assist you with the A&E and GC selection process and through construction.  Relationships go a long way in moving things along, so one who is local and well regarded will be worth their weight in gold.

Good luck with whichever way you choose to go!