203k Renovation on OLD 3-flat built in 1880!

[Meera Lakhavani]

Hi BP Friends!

I am close to starting my first rehab with FHA 203k! My offer has not been accepted yet but I am hoping for the best.

The property is a zoned 2-flat with illegal third attic unit. I think we can remove the stove from the attic to make this FHA compliant.

I actually have not SEEN the inside of the property yet because it is nearly impossible to get a showing (uncooperative month to month tenants, even the seller's agent has not seen the inside yet) so I am assuming the worst and anticipating a full gut. 

The list price is 385k, and I have offered 355k. Given the FHA limit of 468k, I am hoping I will end up with about 100k for renovation. 15% of this reno cost would be set aside as contingency fund to comply with FHA reno regulations. So basically I would have to try to do a gut for 85k on a house BUILT IN 1880!

I know my inspection and contractor quotes will reveal a lot more, but does anyone have experience with rehabs on a 140 year old property? What should I look out for, and is my budget even realistic?

All input appreciated! Thank you so much!

TLDR: Potentially gutting a (small: ~3000 sqft) 3-flat built in 1880. What should I look out for, and is it even remotely possible to do this project for ~85k?