Need advice on this deal & contractor advice before i sign Philly

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duplex in Philly price is 265k 2/2 and 1 bath each unit, unfinished basement. property tax 3k, current tenant been there 15 yrs paying 750 a month 2nd tenant month to month paying 850. there are only 2 duplexes in the whole area for about 1.5 miles in each way. the duplex next door (same building both connected) sold for 295k 10k over ask. it was the same layout same everything but has been rehabbed

market rent is 1100 to 1200 for 2beds, very safe area. the one I'm sending an offer too has not been updated is sold as in condition. it's not bad inside from what I see its more cosmetic work. with 10% down is 31k downpayment and 1553 a month, 15% down is 44.5k downpayment and 1486 a month. I'm using 135 for vacancy 125 for each repair and CAPEX. this is low because I plan on rehabbing the place as soon as my offer is accepted.

the place needs flooring, updated kitchen current rating is like 6 out of 10, bathroom same thing. bedrooms are huge.

i have around 65k to maybe 75k of total cash for everything. is 20k to 35k enough for rehabbing enough?

A few thoughts:

1) Buying an existing building with long-term tenants and then forcing them out in order to renovate and push up the rents is unfortunately something that does happen often in RE investing, but you should consider carefully if that's the type of investor you want to be or not. It's the type of thing that gives landlords a bad reputation and can create hardship for the tenants.

2) Even if you could get it renovated for $20-35K to comparable condition to next door, $2,300/month for a $295K all-in is not a very good return, especially for Philadelphia, unless it's truly in an A class neighborhood.

3) Under your scenario, you're not buying it with any equity in the property, you're all-in for market value if the ARV is indeed $295K. If you're ok with this, why not just buy one that's already renovated instead of doing the renovation yourself?

4) Whether $20-35K is a sufficient rehab budget isn't really possible to say with the information you've provided, so much depends on the scope of work and the contractor setup. Most likely though, from my experience, it is not enough.

5) Make sure that the duplex is legally zoned, there are a lot of non-conforming multi-families in Philly and that presents a problem for legally renting it, for financing, and for resale.

Although there may be other circumstances that make this a good deal, given everything you've presented, and the potential tenant displacement, I would say this is not a deal that's worth pursuing.