Pictures can be found HERE... Listed for 80k.
It's a 4-plex. 5bd, 4 bath. 3000 sq ft located in Duluth MN. This has been on the market for over 6 months and started out at 150k asking price. So seller is obviously looking to sell since they have come down in price by more than half.
My problem is that I don't have any idea how much it would cost to get this property up to c class rental unit standards. 10k? 20k?
I will be the first to tell you I don't have all the answers to this, but I'll help as much as I can. I have 3 fourplexes with basically 900 sqft apartments.
My "rehabs" so far are basically re-paint (walls, not trim), do minor repairs, replace carpet w/ LVT (about 650 sqft), replace carepet on stairs, and replace the countertops w/ pre-fab laminate tops from big box hardware stores.
Materials and labor come in around $4500/unit when I do that.
Big kitchen or bathroom renovations will drive that cost way up. Labor and material cost could be way different for you than me (good or bad), so take my number with a grain of salt.
I am sorry but no-one is going to be able to give you an accurate answer with the information you have provided. What you need is a contractor to walk the property with you and give you an estimate. Without us seeing the property there is no way for us to truly estimate the rehab. I have done thousands of inspections as an insurance adjuster. The biggest cost is usually what you can't see. In this case, we can't see anything, you can. How old is the property? Is the electrical up to code? If not and you start renovations you may be required to bring it all up to code. Does it have fire suppression? If not it may be required once renovations start. How old is the plumbing? does it hold pressure? You need to check with your local codes to see what upgrades might be required if/ when renovations begin, that way it is not a surprise and you can budget for the costs. Then have a local contractor walk the property with you and give you an estimate.
Also, why are they selling? Does it have anything to do with the property? Sounds like the property is vacant? Why? How Long?
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Suggest you bring in a local contractor writing down what is essential and ask for a complimentary quotation. Few contractors want to waste their time working with people they will not get their job. It is like realtors show this and that and clients do not buy.
Depends on how crazy you want to get. Can’t really tell from the picture about the roof, but assuming that is in good shape, and mechanicals are properly working, you can get out of that house anywhere from 15k to 35k (estimating just based on pictures). Keep in mind, I am using East Coast labor figures.
A couple of things. This does not take into account electrical. I’m assuming for the sake of conversation that it is all set. Now, if you do a full cosmetic rehab where you are basically resurfacing existing surfaces and painting, your talking in that $15-20 k range depending on sqft. Throw a kitchen or bathroom on the fire, and that number will obviously jump. Same with a bath.
It would help if you elaborate what you actually want to do. But here is my advice. New bathroom tile on the floor. Reglaze existing tub/shower. Get flooring throughout cleaned up. A nice laminate or refinish any hardwoods. Fresh paint. Paint kitchen cabinets and resurface countertop if needed. Maybe throw a new countertop on. Swap out the hardware. Figure about $15k per unit. Very krude estimate made on an iPhone at 2am going off pics and taking no measurements.
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