NJ 4-PLEX Deal Buy and Hold. Rehab Costs is holding me BAck?

[Blake Schreck]

So i got this deal in the hopper for a 4 plex in NJ. its listed at 199K right now, short sale. And is inhabitable. Complete Rehab. Good bones though and nice brick outside. 2- 2bedroom units & 2- 3Bedroom units. Estimated rent a month = $5,200. taxes= 16K. insurance= 1500 to 2K. ARV= 375K to 400K.

Estimated Reno Costs are 150K. My brother is in the construction field, i got my RE license couple months back, and my oldest brother is in finance. Our passion is in real estate and we want to develop a buy and hold Real estate business. We have 2, 2families now and trying to get at least 2 more this year.

We have hesitations with the RENO costs even though my brother is in construction we have not done enough deals to be confident. The plumbing and electric look shot. I guess my question is what do you do when you go to see a property and you just don't know about plumbing and electric, and passing inspection in those areas as well. that is the big question mark. Kitchens, bathrooms, flooring etc, we can handle.

Anyone that has some insight, would love to hear it.