4 Unit to 6 unit regulations?! HELP

[James Baker]

I’ve recently been look at a property right down the street from me.

This property is a 6 unit building, with 4 units currently rented and 2 units that’s currently need rehabbed.

The building is a fantastic deal. 6 units for $125k, each one rents for about $600-$700 a month.

Is this deal so good, because in order to rehab the last 2 units I would need to install fire escapes and sprinkler systems?

What’s are the rules and regulations from converting a 4 unit into a 6.

What would you do?

Thanks for the help!

[Tj Hines]

@James Baker what you should take into account although 4 units are rented, what shape are those units in? Do they need repair - major or minor? This has to be taken into account. I'm assuming you checked rent rolls, so what are the expenses per door for the 4 units?

Is this deal so good, because in order to rehab the last 2 units I would need to install fire escapes and sprinkler systems? (You may also need plans drawn, so permits can be pulled for the work being performed. This must be taken into account.)

What’s are the rules and regulations from converting a 4 unit into a 6.(I'm a little confused. Originally you said in your beginning statement "This property is a 6 unit building" Is this property not a true 6 unit?)

What would you do? (Take all of these good points into consideration and many other individuals that will weigh in on this post. There are quite a few unknowns here to really determine how good of a smokin' deal it is. Good luck )