Property Value Post Renovations
Hello everyone!
I'm looking at getting into buying and holding and I have a question about a piece of property I'm looking at. The property in question is a 3 unit that is currently listed for $50,000. It's a total mess on the inside and I've gotten estimates from contractors stating that it would take about $100,000 to turn it into 3 nice units. So my total investment would be around $150,000. When looking at comparable properties in the neighborhood, not many have sold/are listed for above $140,000. Should I care that I might be into this property for more than the average home in the area is selling for (granted none of them are nice, up to date 3 units) or should I only look at if my numbers work after getting renters into it? Does that make sense? Another (shorter) way of asking my question...If my goal is to buy and hold, does it matter what I am into a property as long as my numbers work when it's rented? Thank you!