203k Purchase and Gut Rehab of 4-Unit Building in Chicago

[Gabriel Alvarado]

Hi,

I am currently in discussion with my neighbor to purchase a 4-unit building in Chicago (Logan Square). The current layout of the building is 2 floors, with 2 units on each floor, and there is an unfinished basement (supposedly about 7 ft. tall). While I have not yet seen the inside of the building, he did throw out a number. However, the building is in need of a full gut rehab, as the building has not really been updated (has furnace from 1956, will need updated plumbing and electricity). My plan is to merge the 2 existing units, so that I have 2 bigger units measuring about 1,500 sq. ft. each. Additionally, I plan to have 2 new basements units (about 600 sq. ft. each). The building will need to have new roof, tuckpointing and the balcony will need to be possibly replaced. I understand that this is an ambitious plan, but what would the rehab cost me, roughly? I am trying to have some type of estimate so that I can assess whether what purchase price would be fair. I appreciate everyone's help in advance.

Thanks,

Gabriel