Need some advice on a possible 4plex

[Hunter Thompson]

I have been presented a four plex on the market listed for 70k. The problem is that it was ruined with flood damage. According to the realtor the damaged areas were removed, dried out, and mold inhibitor was sprayed throughout. 

All four units are 2BR/2BA and prior to the damage rented for $600

The NOI was approx. 20k

I am not familiar with flood damage and unsure if it would be worth the hassle or how much extra I would have to spend apart from the renovations.

Any help or advice would be greatly appreciated!

[John Leavelle]

Howdy @Hunter Thompson

You will need to develop a solid ARV based on recently sold comps to help determine a reasonable offer price. Is it in a flood plan? Or was there another cause for flooding.

Use the ARV, Rehab estimate, and insurance costs to determine if the deal is worth the risk.