Under Contract on a 4plex
I am UC on a 4 plex and there is everything wrong with this property.
Major Foundation issues:
- floors diving all over the place
- cabinets separated from the floors by 5 inches in one spot
- sewer line previously broke in foundation (they jackhammered floors, and replaced broken portion, but didn’t re level, so line still has belly holding 1” of water)
- Concrete deck on second level failing (no supports, concrete chipping and cracking, rebar exposed.
- Needs Roof
- soffits collapsed in 1 area leaving attic exposed
- water damage
- 2 water heaters needed
- in flood zone stream runs through property
I own 1 house hack, but this would be my first big boy investment. Just feels like everything that could be wrong is wrong. Getting a structural engineer, but wondering if walking away is the prudent call here. Max gross CF about $3k/mo once fully leased with section 8, most likely closer to $2k. With moderate assumptions for maint, reserves, vac, barely cashflows. But has potential being four 3/2 units (most quads around here are 2/1’s. Just curious to get thoughts here. I know no deal is perfect, but just wondering im walking into a world of hurt, or I should try to make it work. Motivated sellers (tried to term 2x, they keep trying to keep me in the deal.