help 10plex

[Alberto Urena]

Hello Everyone,

 my name is Alberto, I'm currently looking for my next deal and  there is a 10plex that i could get my hands on it, asking price 425,000 but motivated seller willing to drop that price. is a 4500 sqfl building on a 7000 sqft corner lot, ok neighborhood. units are 6 efficiency and 4 one bedroom. Really bad condition, it needs about 200,000 worth the work. All apartments need to be renovated so im assuming about 30 dollars per sqft so thats about 130,000, roof needs to be done thats about 40,000, and the other 30,000 for any surprises along the way, im getting this prices from a friend that did something like this on an 8plex in my town. NOTE: i have not done an inspection nor have i bring a contractor to this property im just trying to get your opinion before moving forward. as is the property is bringing about  4500 per month about 20,000 cash flow last year ( on a terrible condition ) , after all the work is done property can go up to 550 or 600,000 bringing in 7000 plus per month. BP friends what do you think about this, and if it is a good deal how can i put it together ? i hope i am  making sense let me know if i'm not. thanks 

[Alberto Urena]

Thanks @Andrew Davis. yes i did run it through the BP rental and flip calculators.

All the units are occupaid but the condition is terrible as is they are getting about 4600 per month. so yes holding costs is a good point becouse i think I'd get everybody out of there to do a faster rehab. 

I have a friend in town that has a few propertys like this one and they actually rent for more than what im using to base my numbers on here, Im trying to be conservative with all the numbers. 

it is an estate sell so they won't do owner finance.

im thinking about a rehab loan.