4 Plex deal - worst case scenario total rehab

[Drew Castleberry]

I've just found a deal on a 4 plex, unfortunately I haven't seen any photos or the property yet, and won't be able to until this weekend, and am waiting to hear back from the realtor. It's in a great location, next to a park and popular businesses, and I could easily rent each unit out for $500-$650 after the rehab.

It was built in 1980 and has been vacant for a couple years boarded up and everything, so it'll be a total renovation for the most part.

For all of you experts that have experience with 4 plexes, what do you think would be a realistic budget assuming I'd have to gut out all 4 units and rehab? Each unit is 2 bed 1 bath and the utilities are separate for each.  

I'd guess that it'd take roughly $8-10k per unit, so roughly $40k overall and add a cushion of $50k for overages and a few things that'll need to be done outside. I'll be able to do a lot of the demo myself with some cheap labor, but don't want to factor that into my budget. Sorry I know there's not a lot of details but this is all I got for now! Once I get some information from the realtor I'll post more.

[Marcia Maynard]

Why has it been vacant so long and boarded up? Vandalized in any way? How is the neighborhood? Might need all new wiring, all new plumbing, appliances, fixtures, doors, windows, etc if someone has stripped it. After you've seen it and have taken notes, check out the materials @J Scott has written for estimating rehab costs.