Rebuilding a Small 4 Plex, Starting with Nothing

[Alexis Edwards]

I have been contacted by a seller who has a 4-plex in St. Bernard Parish, Louisiana. The owner is old and lives far away, so it was difficult to understand her on the phone. However, it sounds like the property has been abandoned for at least 10 years, if not more. It was damaged during Katrina and she did not receive enough funds to repair it. My dilemma now is determining the rehab cost. I assume the damage is at its worst, of course. But I am wondering if an estimate of $100,000 is too low. This is not a high-end neighborhood, so the finishes do not have to be top quality. The square footage is about 2,900 and it is 1 3bed-1bath unit + 3 1bed-bath units.

Do you think I'm estimating WAY too low? Also, what should I estimate if the building needs to be completed bulldozed and rebuilt again?