Minneapolis Triplex Renovation

[Gabriel Leake]

Hi,

My wife and I are looking at multifamily property for our first purchase. We found a triplex in Minneapolis that needs a ton of work. Basically it needs to be completely gutted from the looks of it, but we have a contractor looking at it today to get more specific.

If we purchase, we plan to use a FHA 203k loan which includes the renovation cost in the loan. Renovations must be done by a licensed contractor.

Any thoughts or cautions going in to this would be very appreciated. Obviously the biggest factor is how much renovation will cost.

Here are some links to information.

Analysis, assuming 180,000 offer and 160,000 of repairs: 3401 Longfellow Avenue

Images: Link

Thank you so much!