I looked at some quadplexes today but they werent quad plexes. they were 4 units of an 8+ unit building.
Complex A
about $75k per 4
15+ buildings with 8-16 units per building. Multiple owners of buildings, probably multiple owners of the different parts of the building (one owner owns units 1-4, owner B owns units 5-8, etc)
The whole place looked like crap. I mean the units were stripped of electrical wiring, you could see where the crackheads tore the wiring from the breaker box out of the wall and through the wall. The parking lot was full of trash from the unit cleanouts. furniture, clothes, you name it, it was in the parking lot. Plus every unit needs windows and doors just to be secure plus the rehab inside.
Probably needs a f/t security guard until a certain portion is rehabbed and rented.
The problem I see here is I can buy some or a majority of the units but buying all from multiple owners will be tough logistically plus financially. The units cant be rented until the whole place is cleaned up.
While there, i met an appraiser who said the properties appraised at 200k per quad but were now down to 70k per quad and each unit needed about 12k in rehab
Complex B
about $75k per 4
10 or so buildings. 4-12 units each. Same situation. realtors have different sides of the buildings listed in blocks of 4.
This place is on the way up. someone already bought 3-4 of the first bldgs and has them converted into some type of drug/alcohol free community. 2 other bldgs in the back are currently being rehabbed. So now theres 4 bldgs left to buy but cant buy everything as a whole cause again, different owners for different portions.
This seems to be the most viable deal because the community is clean and renting after rehab would be viable even if other bldgs are empty.
these units need alot of rehab too.
Complex C
Very clean complex. Same thing as far as multiple bldgs with different owners. Most of the complex is vacant but there are some rented units. I talked to a guy there and his cousin owns most of the units/bldgs.
The units are not in bad shape and dont need tons of rehab but there may be some floor issues.
Here it looks like I could only get a small portion of the units and the price is much higher than the others. 169 for 4
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complex C has an association to deal with the grounds and common elements such as roof. But what about the other complexes? What if there is no association? how are issues like the roof handled?
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Do you think its possible to get a loan to buy these and rehab costs at a %100? My goal was buy these, rehab and refi and pull some cash out
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kind of last minute idea but could i possibly sell each unit down the road like a condo and offer owner financing?
BTW, most of these are REO’s so owner financing is not an option