Should I or the owner rehab the last unit in a small MF?

1 Reply

Hi everyone!

BP is amazing and this is my first time posting. Nice to e-meet you all!

I'm looking at a 5-unit with each unit as an identical 3BR townhouse. The current owners have gutted each unit and already rehabbed 3 of the units. They are about to start on the 4th unit, but are also open to selling now. They seem to be motivated sellers.

The deal seems very strong from the numbers and location along with the current tenants in the 3 units.

There are a couple options of how to structure the offer that I can think of:

1. Current owner rehabs 4th unit and I rehab the 5th

2. Current owner rehabs the 4th and 5th units

What do you think makes the most sense? 

I'm inclined to go with the current owner rehabbing both units since they have already done the first 3 units with the same crew. If they do, then I think my main challenge of the rehab would be ensuring that the 4th and 5th units get rehabbed to the quality of the first 3 units (which were done very well).

I'm an out-of-state investor and my parents live about 30 minutes away from the property. I also have a trusted realtor locally and will be working with a PM, and they would both review the rehabs.

Thank you so much!

Len

Personally, I would prefer to do the rehab myself because you really get to know the property when do a reno-- but since you are out of state perhaps that isn't the best option for you.