Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 6 years ago,

User Stats

6
Posts
4
Votes
Ryan M.
  • Hattiesburg, MS
4
Votes |
6
Posts

Help Analyze 85% Remodeled Almost Vacant 8 unit and Build 8 More

Ryan M.
  • Hattiesburg, MS
Posted

Hey all,

Long post. Questions at the bottom. Thanks in advance.
I'm still new to investing, as I only have 1 SFH so far. I was brought a pre-market deal of an 8 unit property (two 4 unit buildings) with the plan of adding another 8 units; a site plan was done previously. I believe there is more room on the property to add washer/dryer facilities and/or small playground. It is in an in demand school district and consistently safe town. I have only walked the property so far.


Property has been mostly vacant since at least Dec. of 2016. Six units have been remodeled about 90%; one unit is only about 30% but includes kitchen cabinets and appliances. One unit occupied. My biggest concern is the HVAC systems, the roof will likely need replaced within a few years, and the asphalt parking lot likely needing to be redone. Landscaping is also some concern. Exterior will require minor repairs.


Asking price is $225k. Built in 1968. Seven units are 2/1 about 725sq ft. Occupied one unit is 1/1 about 425sq ft. Only refrigerator and stove; no dishwasher or w/d hookups. Comparable 2/1 rentals currently listed are $550 and $575. Previous taxes were about $3725.

My initial questions are: Do I make a really low offer assuming I need to replace HVAC, redo parking lot, and replace roof? How would you estimate a cost of the future 8 units? 

Let me know if you want any additional info. Thank you all.

Ryan

Loading replies...