I needed some quick advice on a property that has some unique aspects to it, both negative and positive.
Let me start with the basics:
- Property Asking Price: $35,000
- 2,218 Total Square Footage
- $15.78/SQ FT
- 4 Bedroom, 4 Bathroom unit
- Currently set up as a 4 unit rental property
- 1 Two-Bedroom Unit (median rent in the area for Two-Beds unit is $681/month)
- 2 One-Bedroom Units (median rent in the area for One-Bed unit is $544/month)
- 1 Studio Unit (median rent in the area for Studio unit is $485/month)
- The property needs to reapply for rental certificate to rent
- Property was last assessed at $47K in 2014
- In 2013 property assessed at $118K
- With 4 beds and 4 baths, the property would be a great single family home for a family
- Located very close to a school also
- The price per square foot figure is very good
- Exterior is in relatively good condition
- Previous assessment LAST YEAR valued the property at $118K
- Corner lot
- I am not sure how much money needs to go into repairs - here is what I do know:
- The property has some black mold on the interior
- Part of the upstairs bathroom is leaking and now caused the floorboards to rot and begin to weather to the point of a sagging living room ceiling
- Would most likely need to remove a bathroom in the situation that it would be "converted" back to a SFH (4 baths is a bit excessive)
- Property has 2 "kitchens" (I use kitchens lightly because the upstairs "kitchen" isn't much more than some cupboards) but one would need to go.
- Repair costs will not be cheap
I need your help BP:
- Tell me if I am in over my head on pursuing this property.
- If I am not in over my head yet, what is that threshold point where I have 'lost it' and need to give up on this property.
- I also need your expertise to help my decipher what to do with this property - would it make sense to rearrange it back to a SFH, or just to leave it as it is currently set up, apply for a rental certificate, and rent it out?
- Finally, what is the best way that you have all found to estimate repair costs (I am a quite the newbie in this sense so keep it beginner level if you can please)
Thank you for all your help, and if there are any more figures you need from me just let me know
Why do you want to change it back to a 4 bedroom house. What's your plan flip or hold? I would go talk to the city to see if thy have any thoughts or anything on the books regarding the rental certificate. I would like notat tax assessed prices or average rent rates on rent meter. For me those houses are very off!
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing