Feedback on purchasing this Multifamily

[Dominique Mitchell]

Ok Hello Bigger Pockets. First of I would like to say I take another step in starting my business and attended my first meet up. I meet many amazing investors.

So I am starting my investing in rural Minnesota. From what I can see not many investor out this ways most are in the city.

So there is this property that has been on the market for some time now. It is a distressed property, needs a lot of work, ALOT. But is has been occupied by tenants. I'm guessing just a terrible landlord let the property get as bad as it is. It's an old building that used to be owned by the hospital, was converted into three units. Currently on the market for 38,000. I'm guessing since there aren't many investors in the area others are just afraid to touch it. I'm calculating $85,000 rehab give or take 5k. Estimated rents to be 700-850 a month. Not great with CAP rate but I'm calculating it can be around 7-8%. Giving me a value at up to $300,000 on the building.(am I doing the calculations correct?) This deal seems to make sense to me, although I'm a newbie not an expert. Can I get some thoughts on this potential buy. Again I think it's just sitting because of the lack of investor in the rural area, and others just see it and get afraid of the work that needs to be done. Thanks in advance