Converting a Commercial Property to a Six Unit
I am interested in a commercial property - a former Elks Lodge - located in a residential neighborhood for possible conversion to a six unit apartment building. The property has been vacant for a long time, maybe several years. It is a two story box, 6500 sq feet, exterior is brick/block and it probably needs a new roof. It looks rough, but I can see it as a nice six unit building. Starting with the idea that the building is only a shell, it needs to be built out as a six unit, each with 2br, 1.5 ba. They would rent for $750-$850.
It was last listed at about $45k and did not sell. What are your ball park estimates for the cost of renovation. Or should I determine the maximum that should be spent on a project assuming maximum gross annual income of $61,200. I think multi family units average about $75k in this area. Those numbers tell me renovation costs should be limited to about $400,000.