Possible 4-Plex purchase , looking for advice

[Mike Berkaw]

Hello Everyone,

I have a verbal agreement to purchase a REO 4-plex that has been condemned for over a year. This will need a full rehab of all 4 units before it is habitable again. I have received the Asbestos and mold report. The mold was obvious in the walk through but I cant smell asbestos.

The city has a list of items that need to be completed before it will be considered habitable again. Asbestos has been found in the vinyl flooring, popcorn ceiling, windows and siding. I had planned on replacing everything but the siding anyways so it was not a major concern. Hopefully I will be allowed to repair and encapsulate the siding as it's in decent shape.

The selling price is 140k and I factored about 100k in rehab, which may be high since I will be doing a lot of the work myself. The ARV should be around 320k based on the current comps. I plan to use the BRRRR strategy and have little out of pocket in this place once its done and refinanced.

Purchase - 140k

Rehab - 100k

Refinance 240k

Rent $750 to $800 each

Based on the BRRRR calculator I would have infinite ROI and around $630 monthly cash-flow. Almost everything in the house will be new so i don't expect much cap-ex in the first 5 to 10 years.

The neighborhood is growing as there are more and more people coming in from near by states. In the past year duplex prices have gone from 200k and now selling around 260k, so I think i will also see appreciation over the years that I hold it. 

Does this seem like a decent deal?

How much should I expect regarding the asbestos assuming I have to hire it out to a specialist?

Let me know if there is any additional info that I can add to better explain the situation.

thanks!