I have a newbie question, I completely understand how difficult it will be to answer but will ask anyways in blind confidence someone is willing to join me in this ridiculous conversation.
I am looking at a purchasing a 1600 Sq ft 4 bedroom duplex in D neighborhood. This house is selling for extremely cheap but that is because it is bare, everything has been removed down to the studs. The roof is mint and was replaced past three years but everything else needs work, its a full basement but has a bulging cement. Forced air and electricity is separate. I would be doing most of the work myself slowly. I am curious if I was to make this into a D level house nothing to fancy for the neighborhood would anyone have an estimate at all? I understand you will easily be 20000 off. and Secondly would anyone recommend starting in a house like this just to minimize risk or do you think this is a bad move for a rookie?
Whether it's A+ or D- area, the base materials such as drywall, nails, trim, etc will cost the approximately the same. If it's a duplex, you're going to be x2 with a lot of things. If it's down to the studs, I'd estimate you're around $30K-$50K.
I would not recommend this house, sure.. you can do all the stuff yourself, but the amount of time/energy it will take, not to mention the motivation just to get it done.. do you know about pulling permits? do you know what's required in your area? I'm assuming ceilings are ripped out, so you'll need insulation too.. ever hung drywall for ceilings? it's heavy, and horrible!
I would recommend getting a decent fixer upper in the same D/C area, but one that just needs more cosmetics like paint, fixtures, etc. Get your feet wet first, and know your skill level with electrical/plumbing/drywall/hvac,.. full rehabs IMO are for teams, b/c it's A LOT of work. Good luck!
@Joshua Kleinsasser I wouldn't start with a D area as your first investment, if ever. Especially a gut job. Start with something a little less rehab in a C class area. It will save you a ton of headaches and give you a good start.
Hand it over to a flipper or wholesaler and it move on. This should not be your first deal. Look for something in at least a C to provide you with any type of positive result that will provide you with a desire to do prop #2.
IF you are crazy/daring/foolish/brave enough to take it on, at the VERY LEAST, bring a full scale licensed contractor (not one you found on CL) to physically walk the property and provide you a bid for the restoration project.
Best of luck to you!
@Joshua Kleinsasser Assuming that you don't have to do any work on the exterior (good roof, windows, doors, siding, etc) and the framing is good, I would estimate that your material costs would be in the $25-30/ft2 range. Since you stated that you would do everything yourself, that could mean that labor is zero cost (but I doubt that since some of the major trades like electrical, HVAC and plumbing may not be legal for you to do them yourself). Subcontracting electrical, HVAC and plumbing would likely add another $10/ft2. So for a 1600 ft2 duplex, that would be about $40,000-56,000.
I would not suggest investing this kind of money in a D area. Think about how you would feel after seeing a bad tenant trash your property after all the hard work you put into it.
You can do anything you set your mind to!
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