Triplex Deal w/ Lots of Rehab
Help see if we should go ahead with this triplex opportunity. 3bed/3 bath 1450 square feet.
Currently in due diligence with asking price of $70,000 w/ estimated rehab costs of $80,000 including:
-Asbestos Abatement
-Paint
-New Appliances for Kitchen and Showers
-New Boiler/Venting system
-Plumbing and Electrical
-Header in the basement
-New Windows
-New Roof
-Tree Removal
Rents in this area for the single units (400 sq ft) = $700 and one larger unit (800 sq ft) = $900, total = $2300. Good variety of jobs in the neighborhood, safe and good schools. Street parking.
We're a little worried our ARV will be only about $140,000. A duplex in the area just sold for $192,000 at 1800 sqft. This would be a cash deal and we would like to refinance out after 6months - 1 year.
What do you guys think? Should we try to ask for lower maybe $50,000 since there are so many costs, walk away, go ahead at $70,000?
Mia Edgar