Advice Needed for Rehab for Duplex/Triplex/Quadruplex

[Bob Asad]

I have a few questions regarding wanted to buy a full duplex or triplex.

I would be using a HELOC on primary residence to get the 20% down payment + costs required to fix.

1. What is it called (form or process) to have the duplex/triplex be contingent based on the amount it will cost to fully renovate/rehab? (In other words, if it's too high, then I can cancel the buy and not have to lose any money)

2. Who do I need to hire during the process in Step 1? (is it just an inspector and that's it? What's the name of the position or person who can tell me exactly a price range for what areas of the duplex/triplex need to be fixed and how much they cost?)

So I basically would want a person who looks at the whole house and gives me the appraisal cost, the areas that need fixing (ex. kitchen cabinets, tiles, bathrooms, plumbing, electricity, etc.), and how much the cost would be.

Then this way, I could decide to proceed or not based on the assessment. Not sure, if this means hiring multiple people (one for appraisal, one for inspection, one for cost estimates)

3. Last, how do you find the ARV? (After Repair Value; is this another person you have to hire?)

4. Any websites or groups people recommend for Florida to find full duplex/triplex/quadruplex?

[AJ Wong]

HI Bob. A quality local RE Broker/Agent in tandem with a reliable contractors should be able to help you with full analysis of post rehab value. The more detailed estimates prior and during contingency, the more accurate the assessment. You can't generally create a contingency on the proposed value, but you will likely have an appraisal contingency that it must appraise for the purchase price. Be careful with properties that need too much rehab and won't finance, a strategic lending parter can be helpful there. I'm no longer active in Ft Lauderdale but grew up there and have an extensive network. In fact my friend has an off market Triplex in Pompano and another north Ft Lauderdale he has considered selling. They are active AirBnB's. Check in with @Joseph Chiofalo he's a local strategic lender and licensed RE Broker that supports investors. He can give you some general financing guidelines that can refine your search and forward some listings for reference. DM me for the off market deals... Good luck!