4plex REO questions

[Sam Leon]

FNMA REO 4plex.

Previously owner completely vandalized all four units, removed all wirings, copper pipes, broken off cast iron drains, all windows, mirrors, tiled surfaces destroyed.

Interesting that the original owner actually owned two buildings, both 4plexes, next to each other, let's call them building A and building B.

Building A was listed with one realtor, at a reasonable price. However, building A wasn't vandalized. Everything was in place except appliances, water heaters and window AC units were removed. Building A can be made rent ready in about two weeks. Building A was already under contract on day one.

Two months later, FNMA listed building B, a complete gut job. However FNMA listed building B at the same price as building A, but asking for cash offers, and put this MF property on the First Look 15 day program.

So my question, why would FNMA list these two buildings at the same price? It makes absolutely no sense. I understand from reading other threads that FNMA will only accept bids within 90% or so of their asking price, so makes no sense to put in a fair bid with the gut job factored in at this point, correct?

Since there is no water (all copper pipes removed) and no electric (all conductors downstream of the electric panels were removed) not much one can do inspection wise except the roof.

With a MF building like this do you renovate all units at the same time and get them ready for rental all in one shot? Or do you rehab one unit at a time - with the thinking that you can get one or two units ready sooner. I am guessing it would be much harder to rent out units in a building that's going through construction with the dust and noise so may be no real advantages in staggering the rehab?