Hi,
A seller a few hours away wants me take over his 4-unit (all 1 BR/1 Ba) residential property straight up. Has good tenants (month to month) but the rents ($1,200) barely cover his expenses and he’s tired. Looks like there’s some upside potential to the rents but probably installing replacement windows and off-loading the utility costs on tenants will be more effective to increase cash flow. He’s 7 years into a $35K 15-year mortgage, payments of which I’d be taking on unless suggested otherwise. Comps are probably in the $70-80K range.
Exit strategy probably either quick wholesale now or, after 6-7 months to get the numbers where they should be, a re-fi or sale in 6-7 months to take the seller out altogether.
What do you think? Thanks in advance.
Rick