Cost to repair 100 units class d property

9 Replies

I have a distressed property I’m looking to purchase.

It’s 100 units, probably needs to be gutted out completely.

I wonder what it would cost me per unit to make it new?

It’s a class D asset, average market rent is $500-550.

What should be my budget? I would appreciate if anyone can share some input?

Thanks

no one can answer this..  you need to be talking to a local contractor not the internet.

to many un knowns.

Originally posted by @Candace Price :

@Michael P.

I don’t think what market I’m in really matters as long as we know what class the property is,

Like class d property with avg rents of 500-550 will be almost same anywhere you go...

Contractors in New York City cost the same as in Dayton Ohio? I doubt it, I think the market matters. 

@Candace Price , for what it is worth, I have spent $100,000 on near complete gut of a 1,300 sq ft house.  These are my contractors, my finish selection, my permit costs, includes replacing furnace and AC, new siding, rewiring, new appliances, adding a bathroom and rearranging another, rearranging kitchen, etc. 

Surface level rehabs on larger scale apartments can be done for $7500/door, but this is not a gut.


Originally posted by @Candace Price :
I don’t think what market I’m in really matters as long as we know what class the property is,

Like class d property with avg rents of 500-550 will be almost same anywhere you go...

Nope...  Doesn't work that way...

You need factor in:

- Location

- Type of contractor you will use (licensed/insured or not?)

- Level of finish (even D-class properties can have different levels of finish)

- Size of units

- Specific Scope of Work

- Your negotiating ability

- Whether you will pull permits

And a whole bunch of other things...