Looking to BRRR

[Julius King]

Multi- family Property needs full rehab. Priced at 35k. ARV 269k (based on similar properties recently sold and similar properties in area that are for sale) but it's not a desirable area in Newark, NJ. Going with a contractor to get an ERC. can anybody give me a heads up on what my rehab will cost? I'm not afraid of the area but does anyone have advice to give on purchasing a multi family in these types of areas?

[Ibrahim Hughes]

Newark is known for having over inflated values in my opinion. You can tell by looking at the agent complete listing of the comp. If the listing agent and the selling agent are the same, I would be there and wouldn't trust it. Finally, make sure your rehab numbers are spot-on.if you're going to gut the place, that means you're opening up the walls and the city inspectors will be scrutinizing you with their Infamous microscope. This means that any shoddy workmanship will have to be corrected. This despite the fact that it may have been done fifty - sixty years ago. I'm very apprehensive about doing good rehabs on any properties where City inspectors are going to get a full View of what the framing looks like. Back in the day, in various towns, inspectors often looked the other way when a lot of these homes were built. As a result a lot of the framing lot of walls are being covered by shoddy workmanship and things that would not pass code today.