I think it's great deal, but I could be problematic in the future

[Rod Smith]

Hello fellow BP members,

I just made an offer on a 4-unit residential property in SC and I want to know if I am looking at this deal the right way?

Here are the stats:

Purchase price: $24,000

Estimated Rehab costs: $35-$40,000

Potential rent: $400-$450/unit (conservative) $550 (max)

Financing:

1. Use a hard money lender to buy and rehab and refinance after 6 mos or a yr. (see concern below)

Here are my concerns:

The building is in a community with several other quads all built at the same time. The others are either owned by people that are not repairing them and another investment company has bought 3 or 4 buildings for future renovation but the realtor is not sure when they are going to begin rehab. I checked the tax records and it appears they bought one of the buildings as far back as 2011 and it has been boarded up since then. With that in mind, I am worried that once I rehab my building I will be unable to obtain an ARV that I need to refinance out of my hard money loan.

Any suggestions on how to approach this deal?