Hundreds of holes in the wall, filthy carpet, leaking roof and number of different kind of modifications on flooring.

The existing quad is listed for sale at $1.1M and a 5.3% CAP.Commercial multifamily in the area sells at a CAP rate of roughly 4.5%.The existing property is zoned to allow for 6 units and has available land to build an addition duplex for ~$150 per sqft.Assume 1000 sqft duplex at $150,000 and we’ll build that into the loan.After expenses, the additional units will each increase the annual NOI by $14,400 = (Gross rent – operating expenses = $600x12x2).Purchase Price  $1.1MMConstruction:  $150KLoan amount: $1MMTotal for project:  $1.25MM20% down: $250KPre-construction NOI:   $58,300Post construction NOI:  $72,700What is the estimated property value after construction?

That means multiple management companies, 30 roofs, 30 water heaters 30 furnaces, all ticking time bombs.  

You may be able to write a project requirement that the GC carry builder's risk but you'll get some pushback on this.

I can practically bring in tenants after some quick and basic fixing such as the roof, painting, carpeting and new windows.

if you can get $3300 a month then you should be able to get $275k-300k for the 3 family unless you need things like a roof and windows which could drop the price. 

@Weina Shi sounds like a good project.

The economies of all your tenants under one roof are amazing.

Just from renting rooms in your basement, why is it so hard to find someone to fund the project, with those income numbers....

Hello, I am a licensed commercial and residential general contractor who has been building and developing multifamily projects for nearly 30 years in Phoenix Arizona.