678 Selden, $30k

[Pcm]

http://www.loopnet.com/lid/17258216

This has to be the cheapest property in Cass Corridor!

[GUSHI]

The price is low, but 30 unit to renovate, could be very costly. No parking

[Pcm]

Is a parking lot in this neighborhood really that desireable? I mean, look at all the apartments on Second an Third, most don't have lots. Street parking is sorta the norm here.

[GUSHI]

You do have a point, I wonder what kind of condition the building is inside, any idea?

[Hamtragedy]

The listing mentions the scrappers had their way with it.

[softailrider]

You do have a point, I wonder what kind of condition the building is inside, any idea?

It's probablly a shell, if the lot was larger, it might be worth the 30k. I would say about 40 thousand to knock it down.

[rhythmc]

To need an replace of all major systems means that that building is essentially worthless. You'll spend more money fixing the building than it currently costs. It's a money pit.

[detroitjim]

Where do the Austrailians be when you need um!

[mikefmich]

25k per unit minimum to re-hab. That's probably being very optimistic.

[rencense]

To need an replace of all major systems means that that building is essentially worthless. You'll spend more money fixing the building than it currently costs. It's a money pit.

Sometimes thats true but sometimes it makes financial sense to start fresh. I've actually been working on a building lately that we're trying to sell as-is. All the old hvac, electrical, etc was pretty much shot and had been cobbled together through the years. Basically I stripped it down and cleaned it out for the next owners [[who can finish it however they want; i mean its a square cider block bldg)

Sometimes its more cost efficient to start fresh than to constantly fix outdated systems. Add in the economies of scale for labor and materials plus other benefits like higher efficiency [[adding insulation, more efficient hvac) If you start out with everything new and done right you can go a lot longer without maintenance problems [[and maintenance expenses) The fact that you'd be spending several times the purchase price is irrelevant if the other numbers work.

Now this is a hypothetical argument for the specific building. If it were a little further north then someone would renovate it in a heartbeat and have a decent cash flow. Unfortunately I think lower cass still isn't very attractive so it may not make economic sense-at least yet. [[and even if the numbers did work its tough getting bank financing to do it.

[rhythmc]

If it were a little further north then someone would renovate it in a heartbeat and have a decent cash flow. Unfortunately I think lower cass still isn't very attractive so it may not make economic sense-at least yet.

and

even if the numbers did work its tough getting bank financing to do it.

It will get there some day, but but it will take time and banks will need to make financing available again.