Partnering on my first 4 plex.. good deal or not

Hey all!

I’ve been a local contractor specializing in work with real estate investors. Through my journeys and relationships I’ve came across the opportunity to purchase 33% of an off market

4-plex my most trusted investor and friend just acquired.

Currently the house is pretty rough.. framing issues, pretty chopped up, needs a lot of work. I’m projecting renovation at $60000 paying me and my crew as well as material cost.

Purchase price is $200,000. My share is to pay for labor and materials to get it up to speed and whatever else I need to put down to get me to 33% of equity. All in all I’ll be in about $85,000.

The plus side is it’s in a very desirable location only one block from downtown in our area. Units will rent between $900-1100 per month. Gross rents at about $48000.

After we renovate and get it rented we plan to refinance and pull the money back out. Our mortgage projection is around $1500.

Utilities will be included in rent and will be roughly $400 per month. Adding another $100 or so for service calls our all in expenses are around $2000.

Considering I’m going to be renovating we shouldn’t have any major issues for some time. I will be meticulous with repairs and make sure to go through with a fine tooth comb.

Question I have is this. To more experienced investors.. does this sound like a good deal? By the time property is finished value should be close to $400,000. (At least)

Let me know your thoughts.