12 Unit Property Value Add Oppurtunity

[Derek Moore]

Hey BP Fam I have a new deal in the Atlanta GA it’s a 12 unit property with 1bed 1bath in each unit for a total of 12 beds and baths plus a basement. It needs everything!! From new plumbing, electric, floors, Sheetrock, exterior work, etc. it’s in an amazing location with great potential for long term cash flow, not to mention the entire neighborhood is on the rise. I’m still new to Atlanta so I’m looking for a contractor that can give me a solid estimate for the construction and rehab of the property before I decide to move forward. I would appreciate any contacts or leads in the right direction but time is vital in this situation. “Let’s buy some property!”

[Phil Christian]

Originally posted by @Derek Moore:

Phil Christian hey thanks for the reply but those numbers sound like I would be way over spending for the market. It does need tons of work but for the sake of perspective.. the target tenant will be college students looking to live off campus.

If it's what you say it is it sounds like a complete re-build. 

Interior Units: $25,000 a unit ($300,000)

Roof: $20,000

Exterior Repairs (Stucco & Wood): $15,000

Exterior Paint: $20,000

Gates/Railing/Fencing: $10,000

Windows: $20,000

Hardscape: $30,000

Landscape: $30,000

Furnishing/Mail Boxes: $4,000

Site Lighting: $5,000

Electrical Re-Wire: $7,500 unit ($90,000) 

Re-Plumb: $4,000 unit ($48,000) 

Laundry Facility: $5,000

Garage/Parking: $4,500

20% GC Fee

= $61,350 per unit. 

I was a little off but I didn't take into consideration extensive drywall repair on the interior units.  Nor did I take into account code upgrades/ADA.  This said, I retract my previous number and would budget $65,000 a unit... if it's as bad as you say. 

Post a picture or link of the property.