[Calc Review] Help me analyze this deal

[Vanessa Switzler]

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Hi All,

Was looking for any thoughts/pearls of wisdom on this deal. It is a duplex that was purchased by a builder in May 2023 for 140k.  The builder has gutted and is converting to a 4plex 1bed/1 bath per unit.  He is looking to sell now at 200-220k so he can move into another project.  An additional 75-80k required to finish the rehab (all in).  

Space could be LT ($800ish) or MT ($1200-$1600 I am told as there is a market for traveling nurses in this area).  I was thinking to split the units (2 LT and 2 MT) to start and if all works out, have all be MT for higher cashflow.  The building is in an ADU zone with ample room to put a 2-4 car garage and additional 1-2 units on top in the future.  The neighborhood (Fountain Square section of Indy) is gentrifying with lots of building and rehabbing.

I am in NJ and currently have one investment property (commercial and two residential units) that I manage myself. This would be my first out of state investment. 

I'm nervous and looking assistance! Thanks so much!