Posted by Irwin on February 16, 2000 at 06:38:48:
In order to tackle something like this, you need to determine (to a fair degree of certainty)what the rental market is for these units after restoration. Are there other similar apartment units now being rented in the area? At what rent? What are the problems with the area in general?
Next, pin down the repair costs. You need a good contractor for that.
Third, investigate the financing possibilities through the HUD 203K loan program, and other city and state programs that might be available through banks. The realtor ought to know what these are. Sometimes you can get outright grants for restoring properties in certain areas.
After you have this information, then analyze the deal to see if you can make money on it. Keep in mind, that rental units like this are management intensive, and that’s how it got into the shape it’s in now.