Beat up 16 unit MF building

[Bjorn Ahlblad]

In the area where I invest there is an old 16 unit, built in the 20’s, lots of lead paint, asbestos, vermiculite etc. Been on and off the market 3 times in the last 12 months. Goes under contract and back on again. Rent roll is 8.5k/mo and the ask is 530. There is a 375k assumable loan. Unfortunately it is on a busy 4 laner on one side and a school on another side.

You could budget 300k and still be at the 1% rule, but replacing windows alone would be 100k assuming they could all be done from the inside-not all that likely. I have seen no evidence of any maintenance other than emergency fixing. Garages are on the ground floor; but have not been used in decades.

I have a 12 unit just a few miles away, so PM is easy once some of the inherited tenants are out-at least half or more would have to go.

BP community; would you take this on or let it die?