4-Unit Multi-Family in Detroit, outstanding water bill
Hi Everyone,
I recently found a potential deal in Detroit for 4 - 2br/1 ba units (multifamily building) in a decent neighborhood from what I have researched. Asking price is $15k, but the listing is FSBO and states that there is an outstanding water bill and taxes to the tune of $45k. Without walking the property myself, I would conservatively estimate that the rehab would be $50k, and from what I've pulled I am estimating this would have an ARV of $95,000. With that being said, given these numbers would the water bill be a deal breaker for you? Following the 70% rule, the asking price gives me flexibility with the rehab budget, but not if I consider the water bill as part of the rehab. I've never dealt with a problem like this before, and I'm wondering if I'd be walking into a trap, or if this is a problem that if solved could benefit me greatly. Thanks in advance for your replies!