All Forum Posts by: Siye Baker

that is a broad question. I would think closer to $100k although your best bet would be to search for the thread in here called "diary of a flipper" by j Scott.

Big ticket items(exceeding $10k)

electrical is probably knob and tube and cannot be grounded-update is costly.

Lead paint and asbestos siding/roofing -expensive to be epa compliant

Hvac are you putting in central for first time, or just replacing worn out parts? Adding ductwork can double your ac expense.

Plumbing could be out of date and need updating(lead piping removal)

Drywall and resurfacing of floors  should each be $10k or less but be prepared to spend more if they tell you the floors have no more room to be cut down(in which case you will be looking at an install).

Without looking at it,I would want a budget of $150k to do this project. Would be good to get it inspected so you can differentiate what HAS to be done from what CAN be done. How this helps

Sebastian 

I will keep my eye out for progress on that property also.

 Quite welcome! Feel free to ask about any other properties in tlh. 

roughly $475/mo would be my estimate. A lot of vacancies in the surrounding neighborhoods

Sebsatian

I looked at this property several months ago, back when it was being auctioned off by the dept of treasury( I believe). While I cannot comment on the what the units looked like, I deemed it beyond my comfort zone, due to:

1) located in an economically depressed area( class D)..one of the 4 worst areas I can think of in the city. Vacancies running amok throughout the area.

2) I believe they are all 1/1 units, so that knocks out a lot of families wanting them

3) your only hope is sec 8, but your potential tenants will probably not want to live across from a drug spot. That stretch of road in particular is not one where I would feel comfortable walking at night time(even with a ccw).

Not to say that you could not make a go at it, but it would be higher on the risk scale as it has already been under contract multiple times. With my limited experience- I would only consider it with a 100% seller finance, non-recourse. As I am sure you will find that the easiest part of the project is the rehab(which is probably understated). I would assume that all the hvac condensers and anything made of precious metals both outside as well as inside the buildings have been stolen. Success will come from financing terms, management of construction costs, marketing and management.

Those are all the reasons why it is beyond my comfort level. Others on here will chime in with all the opportunities that a property like this offers.

Sebastian

I would select multi-family.

@Sam Leon  I believe multifamily is a broad term, including everything from duplexes to condos/apartments.

some ppl use the term multifamily to designate residential only (___plexes)

Sebastian

I am surprised no one has responded

hopefully they do not own pets

Believe it or not...... I think this experience will pay for itself many times over. This will create leverage for his other properties, and this slumlord well end up eating the deferred maintenance, which he thought he could pass on to someone else.

Sebastian