I need some context with a decision. There is a parcel with 5 vacant duplexes for sale, totalling 10 units. 4 units are 1 bedroom, the other 6 are efficiencies. It is on the water and is a quiet dead end street. The building are all block, are individually metered and are connected to a county maintained low pressure sewer system. One of the buildings needs a roof and all need a complete remodel. The seawall needs repaired and I got a quote from a marine contractor that quoted me $30,000. It is a bank REO. They are asking $228,000. FMR for an efficiency from HUD is $605 in my MSA. I was thinking of making this a 55+ community with HUD/Section 8 as a back-up if I don't attract market renters. I would like to get them purchased and remodelled for $25,000/unit as my net will likely be $500/unit. I will likely do RUBS for the water, but pay for the sewer and garbage myself. I'm offering $175,000. I am putting down 20% and will be doing my best to pay for the seawall and rehab which might include my credit cards. It is in a low lying area, zone AE in Florida. My banker is noncommittal until he sees the survey and elevation information, but I think I want to pursue this even though it is low lying and may start shopping the Fannie/Freddie lenders even though this may be small fry for them. Is this deal reasonable?
Thanks for any help you can give me.
sorry for lack of response. Is there an update on your end?
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