All Forum Posts by: Quado C.

@Quado C. What do you end doing in this situation? 

Were you able to dispose the property? Thanks! - Ola 

@Quado C.Actually that is about as good as you can get in Madison Park. That is a good thing for you.  I don't know comps specifically in that area but I don't think it will be an easy sale. Fortunately it won't be near as tough as I feared originally. 

It would depend exactly where in Madison park. On block the wrong way and it makes a big difference. Franky I think you paid too much and given the amount of work needed it is not worth what you have in it.

I know of a 5 unit building in the same neighborhood. It is Fully rented and operating for about the same or less than the all in cost on your building.

PS: this is not a solicitation, the 5 unit building is NOT my building. It is on the MLS

I truly feel for you as I have been exactly in the same place, crazy! I was burned by 2-3 contractors and the rehab took more than a year, same neighborhood. I bought mine for $150k and put $ 150k into it by the end. My concern is that I am not sure if $80k will be sufficient to complete the house? 

So you have had all the inspections to rough in? General, Insulation, Framing, Electrical, Plumbing, and HVAC?

FIrst thing I would do is get a solid licensed insured contractor in there to do a scope of work and estimate to complete the work.  My guidelines for contractors are as follows:

1)Licensed
2)Insured

3)Can show you their current work and quality

4)Are solvent and able to use their own funds to get started on the work and get paid in draws as work is completed - this protects you!  This is how we do it when we make hard money loans too.

5)References

There is no guarantees here, but you minimize the risks and a licensed contractor is liable.

Most investors are looking for a deal and this may not be as attractive as other options they might find in my opinion.  

If $3300 is the monthly rental income, what are the estimated monthly rental costs?? Are the units self contained and separately metered? 

Quado,

I actually had an identical situation on Madison Ave in same area which I purchased years ago and recently sold.  This is a tough situation and i am happy to share some advice.  It might be best to reach out to me via email.  I am happy to share some details here if you prefer.  The real key here is how much work still needs to be done.  It will be tough though to get someone to come in here and pay around $300k.  How much is still in escrow for the work to be done?