Value Add in Ensley AL
I have a LOI between the buyer and me on a multifamily building. It needs a lot of work, and there are vacant buildings just down the street.
We are looking to upgrade the HVAC, Electrical, plumbing, windows, roof and finished surfaces. It is a lot of money to be putting into this neighborhood (+300K). The crime and such is not as much of a concern. But the Vacant buildings make me uneasy.
So, My question, How many investors have successfully in renovated multifamily in the Ensley and moved rents up?
Current rents are $250 and $350 for the units at 80% occupancy. I understand section 8 pays $400 to $550 for the size units we have. Is there real opportunity here or is it all in my head.