Rehab Multifamily: How to know if it will rent?

[Jose Manuel Ramirez]

Hello Bigger Pockets:

At the moment my father and I are looking at a 11 unit multifamily property that is very distressed. It's been abandoned for around 2 years, but it still has good bones. The property is in the small agricultural town of Edcouch, TX. It's about 25ish minutes away from the metropolitan area of Edinburg. We are purchasing the property for 106K and believe it needs around 100K for it to be up to code and be ready to rent. So the investments would be 206K, and we believe that it could be worth 400K when fully rented(rent of 600, cap rate 10%, expenses 45%). We have been doing house flipping for about 2 years, but have never done anything with multi family properties.

We know it's at a good price , but how can evaluate wether there is going to be enough demand to rent? What are the metrics you look at when deciding this?

Thank you

[Dena Puliatti]

Congrats on your find!  The multi market is tight!  The best thing you can do is contact a few local property managers and see what they have to say about rentability in that area.