How much to pay for 4-unit REO

[Mariah Jeffery]

I just viewed a 4-unit REO property that will come on the market tomorrow. It's in good shape structurally except for frozen pipes, which is a pretty big deal. Cosmetically, it needs a lot of work. I estimated $22K worth of work, so I'm factoring in $35K to be safe. It last rented for $600/unit including gas and water. This was over 1.5 years ago before the foreclosure. I was planning to put in electric water heaters or possibly even get it metered separately. Since it's been vacant for so long, I can't get an accurate rent or utility bill number, but I think the $600 with gas could be raised to $625, since this is a strong rental market. I think they could bring $550-$575 w/ no utilities included. The agent expects a list price of between $60K-$80K.