Rents are estimated to be $2300/mo and post construction appraisals are averaging $377k for this model.

I think it has great potential there are 7 units and it's priced about 50k per unit.The units are each 2 bed 1 bath and is netting an estimate of 450 per unit per month.I went on BluePockets rent estimator tool, and the comps for the area is $865 a month. if I can net $600 which is no where close to the $865 that BluePockets estimates, then the property would generate 50k a year.Am I missing something and the property is fully leased so it has to be in pretty decent shape.

(Example: buy house for 250k, put 25k into rehab, ARV is 320k estimated return after repair ~45k + whatever equity we have after a year)?

Negotiations of the final purchase were based on comparable price/sf and cap rate for the area, as well as anticipated deferred maintenance that was estimated during the initial property visit.

In other words, getting an appropriate ARV for a subject property and estimating the correct rehab cost.

I'd love to see the numbers on this property and what your estimated profit will be. 

I fielded estimates from other contractors, but this guy was from a reputable company with good reviews and I decided to trust him. 

I went under contract back in June of 2021, with an estimated completion date of January 2022.

We are estimating about $60,000 to be used in the 1031 exchange.

City road ends at park entrance.Considering the land price, infrastructure setup cost each lot cost was coming around $7300 which was very attractive even though most of the houses on them were old and needed good repairs.All other lots except the 59 were in considerable good condition and our due diligence showed that whole park value is going down due to these 59 lots mismanagement for 40 years.As per owner rent collections were around $7200 per month and most of the tenants were very long term (average rent $400 per home) which he receives in cash so bank rolls available to validate.As per our estimate, each house needed 7k to 8k repair to make it livable.Negatives:These homes/lots were owned by same owner for 40 years and he neglected everything which includes tenant quality, infrastructure (such as overgrown trees, bad homes still in the park which should have been removed years back, 3ft- 4ft potholes on the road since its privately owned).Most of the tenants were convicted or had some big felony, these houses were famous for drugs cartels in whole city.After buying we realized things were way worse than what we assumed in due diligence:People staying there actually were involved in gang wars, prostitution, drugs etc.