Multifamily UH/TSU Numbers

[Uche O.]

I would love to get some opinions about a property I have under contract. The property address is 2701 Isabella St. and has two duplexes on one lot.

https://www.redfin.com/TX/Hous...

It seems the agent listed the property according to only the square footage of the front building. However, HCAD lists the total square footage as 3,762 (2,178 sq/ft for the front and 1,584 sq/ft for the back) and lists the full square footage as "living area".

If I take all of the multifamily properties sold on that block within the last year, select only the renovated properties, then average them after dropping the highest and lowest - I get about $180/sq/ft. That would put the property at around $680k ARV.

Also, I'm thinking that the property would be able to get ~$1350 for rent if fixed up and renovated. The property is in pretty rough shape and would need lots of repair so before going down that path I want to see if my numbers check out.

Any thoughts?

[Uche O.]

Thanks for the replies, everyone! I decided to let this one go. I had an inspector go through it and the repairs it needed would have really thrown the budget off. Both units are quite literally falling apart. Foundation issues, plumbing, evidence of past termite damage. On top of that - two units have been sitting vacant for well over a year. Out of the other two - they are currently taking one tenant to court to evict them, and the other is occupied by an undocumented immigrant. If the seller was willing to price in the risk, I might have taken on the challenge - but it seems like my time is better spent elsewhere.