Value Add in Ensley AL

[Wilson Lee]

I have a LOI between the buyer and me on a multifamily building. It needs a lot of work, and there are vacant buildings just down the street.

We are looking to upgrade the HVAC, Electrical, plumbing, windows, roof and finished surfaces.  It is a lot of money to be putting into this neighborhood (+300K).   The crime and such is not as much of a concern. But the Vacant buildings make me uneasy. 

So, My question,  How many investors have successfully in renovated multifamily in the Ensley and moved rents up?

Current rents are $250 and $350 for the units at 80% occupancy.  I understand section 8 pays $400 to $550 for the size units we have.  Is there real opportunity here or is it all in my head.