Hello all,
I called a FSBO ad today and got to talking with the woman over the phone. I wasn’t too interested in the property that I knew she was selling, but we were conversing away anyhow. The lady then told me she had some more properties (coincidence that all of the books and advice I’ve read here suggests to ask if they have anything else for sale?) that she was considering selling. I asked her what she had and she told me about a few that I wasn’t too particularly thrilled about due to their location. Then the lady told me about a group of three duplexes (6 units total) that were on 1 deed. These properties are side-by-side with about 2-3 ft between each duplex (about enough to walk through to the back). Each unit will easily bring 500 a month in. I’m going to give the lady a call back and get some more details about utilities, taxes, repair history, expense reports, etc so I have no other numbers to work with at this time. The neighborhood isn’t Beverly Hills, but it isn’t bad either. I would live there if I had to/ may live there if I decide to buy for at least a year. There is a hospital three blocks away that is the regional leader for health care and has a new 250+ million dollar hospital being added to the existing hospital. My questions are these:
Does this seem like a good lead?
and,
How would the deed work out if I were to ever sell each place in the future; will it be worth the hassle?
The tenant pool in this area is deep and the 500 a month rent is certainly reasonable from the research I’ve done for the area. I’m thinking that the future for this area will continue to prosper with the addition of the new hospital and will allow a nice appreciation over the long run. Please, if you have anything to add or ask, do so! Your advice is greatly appreciated. Thank you for reading!
REI_Chris,
It sounds like it could work out great for you. I think you will not have too much trouble sub-diving the 6 units, but of course I do not know the restrictions in the area you are in. I think I would try to get a full package deal for one low price to flip the ones you do not want.
Good luck to you.
Richard Stephens
Thank for the reply! When I initially asked the lady about the price, it seemed as if she just through the number out there. I believe I may be able to get her to come down some, but then again I don’t want to ruin the deal over a couple grand. The woman said she wanted to sell all of them together for that price of 120k so we will see how things work out.