What would be your maximum purchase price.

[David Schach]

I am looking at a duplex in SF, list price is just under a million. This will go over asking and probably by at least 15-20% maybe more.

this property needs 500k worth of work. plus or minus 100K. 8-10 months turn around time

Exit strategy would be to split the duplex into 2 TIC units.

One unit could re-sell for 1.1-1.2 MIL the other 900k-1.0 MIL.

On the low end re-sale could be 2MIL and high side costs 600K assume another 200K in soft costs (closing, carrying, permitting, plans, etc)

On the high side resale 2.2MIL with low estimate on costs 400K and still assume 200K in soft costs.

Would anyone pay over 1.2MIL?