Hi Guys, I am considering purchasing a 30 unit low income complex for $320.00 with the following breakdown:
24- 2bed + 1ba current rent $495.00 under section 8
6 3bed + 1ba - current rent $570.00 under section 8
12 Units currently vacant and have been for 10 months. Will find out precisely why during due diligence. No unit has major damage… 11 2 bedrooms, 1 3 bedrooms.
Built in 1978
1 car garage and 1 car space each
5 Buildings Total
Pitched Roof
Proximate to shopping, schools, university.
Total Population within local city of $12,000
12 Units currently vacant and have been for 10 months. Will find out precisely why during due diligence. No unit has major damage.
each unit has individual meters but for some reason previous owner changed units to master hence owner pays for all utilities. The utility expense is $40,000 a year.
Typical vacany 15%
Deferred Maintenance $60,000 approx…
With the above information what do you guys think? Do you think there is potential?