Need Help With A Deal! Thanks
Here is the deal I am trying to put together ... Having troubles to get down construction cost ...
I have an opportunity to buy a 3 story Brick building with full basement for $200k ... Zoning is R5 ....
Dimensions: 19x136
It is in need of the FULL REHAB ... meaning needs to be gutted out inside (even floors and support for it) ...
Idea is to make 4 (2-3 bedroom 2 bath)
apartments including the garden apt from basement.
Apartments in the area and next buildings are selling and sold on average for $200-230,000 and garden apartment for less around $130s
Since I am not a GC and never done work on this level, I can't get my numbers straight. I talked with a friend who has done some rehabs and he figured $60,000-65,000 to rehab each floor including everything (baths, kitchens, HWAC , plumbing, electrical) and I am not even sure what else ... And all that with upscale touch due to the downtown location and developing area ...
If there are any ppl who have done something like that in Chicago area would really appreciate the response.
Is it possible and doable ? Also it will need to be converted to condominiums in order to sell ...
Would appreciate any feedback on the whole process.
Thanks.
Possible--yes
Doable--yes
good investment--not sure yet
I would call GC's in the area and ask for a bid. Ask that they break down the charges as much as possible for you so you can see where each piece of the pie is going.
If it makes good investment sense (compare comps, etc), then talk to an attorney about potential problems since I assume this building was commercial before? How R5? Just double check all of this for your due dilegence.
Good luck!