hi everyone before i started this thread i did read a-lot through this forums well mainly this one and beginners. im looking to get into real estate little facts about me. 21yrs old no previous rei experience i don’t have any rehabbing abilities.
there is the 4 unit apt building close to where i live like 3 min drive its going for 43000 i looked at the place with re agent and it doesn’t look bad at all. i would say around 2k would be all it would need to make it desirable to live in than again i that’s just from what i can see. im looking to see if i can get a loan approved before i get any deeper but what do you guys think? is it too much? for a newbie? the apts have 3br1bath a huge living room and kitchen. the re agent im working with right now showed me by mistake an apt building they are selling on the next block across they are asking 100k and the apts are smaller they are renting for 450 i would rent this ones for 500 bad thing is its only off street parking. anyways any input is appreciated.
now by any means its not 100% that im going to get it but i want to be as knowledgeable as possible for possible future deals.
if you guys have any questions for me let me know in case im missing something.
The easiest thing for you to do is go to a bank & see if you can get approved to buy the property. Don’t over-complicate things. And if get approved, go for it. A project like that would be fun for a newbie. Just make sure you have plenty of extra money in case you way miscalculated how much work needs to be done to the place, and since this is your first deal, it would be good if you could afford to make the mortgage payment on the property from your JOB income … that way your risk of foreclosure is little to none. Good luck
You’re looking at just over $10k per door there. That’s pretty good. That’s about where we started too. One thing people always need to find out up front when looking at small multi-unit buildings is who pays for the utilities? Are the units metered separately for water/electric/gas? Some buildings may be metered separately for electric, but not for water. That’s how our building is done. No gas there. The tenants pay their own electric, but we pay for all the water in the building and electric for the common area (hall way lighting and water heater electric use). I’m comfortable with paying water because it’s just not that expensive unless it’s abused, but I don’t want to pay for tenants to keep their places 90 degrees in the winter and 50 degrees in the summer.
You say you have no rehabbing abilities, but I bet you can paint. A good coat of paint makes a world of difference for not a whole lot of money. Painting is about giving a crap. Yes, I know there are professionals who can make rooms look amazing, but for a cheap rental I’m sure you can do just fine. If you care about what you’re doing, you’ll be fine.
If you have questions about prices for repairs there, call some people and get quotes so you don’t get surprised later.