I'm looking into buying my first apartment in my hometown of San Antonio. I have done several SFR flips and have a couple of rentals. The apartment is a 10 unit building that has been vacant for 3 years and has been vandalized. We are estimating a $120k remodel to bring it up to standards and code. Since you don't have any historical records for rent and expenses, does anyone have any recommendations on how to quantify/estimate these numbers. Thanks!! Joe
if it's been vacant that long and you need 10 kitchens and at least 10 bathrooms your estimate of 120k is going to be a lot higher. What you can do is have an agent Compu out rentals within a mile radius to see what it would be to rent out. In addition you can also see what's old and multifamily within about a 5-mile radius and always of course use the 1% rule to calculate the arv. I'm an agent here in San Antonio so if you have any questions I'll be more than happy to help you
Check out Rentometer for rental comps or as stated above a knowledgeable agent. Can you get a general contractor in the apartment to get you an estimate for makereadies on the 10 units, foundation and roof repairs if needed? If you need a good contractor, let me know. Contact PermaPier to shoot elevations, they do it at no cost and will also provide an estimate.
Best of luck I try to see the potential in things but my first thought would be why in this age of property rush in TX, would it sit for 3 years....how many other investors passed this up? and what did they know that you don't?
Let us know what you learn!
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