6 duplexes (12 units) under contract - advice needed!

[Jack Clough]

I have 6 duplexes under contract for 50k each. They are two units/homes per building. So 12 units total. Purchase is 300k Problem is that they need asbestos remediation. Quote is 40k for the first 4 buildings and 60k for the last two (they have it in the walls). Demo quote for all 6 buildings is 100k or we could do it for half that if we hired a bunch of laborers. Anyway when all buildings are done we’d be in it for 2 mil. Rents would be 1500-2k per unit. I’m estimating 220k sale price per unit, but if we wait until the rest of the development is built up then could be more like 250-300 per unit. It’s speculative, But I love what I believe the development will be eventually with a mix of old and new homes, a state park, and the water. I just can’t decide how much risk to take. How many partners? Tie up all my assets for 2 years? Stretch my Construction partner so much that he has no time for other projects? Bring in a 2nd construction partner? Walk away? I know it’s not a horrible problem to have but I also don’t want to turn it into a horrible problem. Would love to hear any advice especially if someone has had a similar situation.