I have a deal I can't get out of my head......
Good Evening,
I am new to real estate investing so please be kind. I think I potentially have a deal I can't get out of my head. There is a piece of property in the NE Bronx section of NY that has been sitting vacant for a few years. I have spoken to the owner and he is looking to get 400K for the property. It is a corner 5,000 SF lot. Currently zoned for 2 family. The structure is vacant and completely demoed. (Owner wanted to build this luxury palace for he and his wife but that's not going so well). Looking at comps in the area single family homes are going for 430-570K and there was just a smaller lot a few houses down, a 2 family that sold for 700K. The structure is in good shape and both sewer and water line are brand new, brand new excavated 8' basement that has been concreted, and brand new foundation.
I believe I can get the owner to entertain a lower offer as he is an older gentleman that wants out. I like this property as a BRRR. It is a legal two family and rents in this area range from 1700-2000 for 2b/1b and 2000-2400 3b/2b.
I estimate a full refurb would run about $150 PSF (including soft costs) and using good finishes.
Since I am so new to this, here is where I get stuck and would like someone to guide me through the next things I should be thinking about. For the initial purchase I am thinking about using private money (hopefully).
Purchase price: 375K
Down payment: 79K 20%
Closing Costs; Figure 10K
Repairs at $150 PSF for 2,000 SF livable (both units) is 300K.