I’m a newbie here and have come across a deal that seems really good. The property is a package of 4 seperate properties with a combined total of 29 units mostly efficiencies and 1/1 units. I could get all 4 properties for under 440k, but most of the properties were built between 1920-1940. The properties are presently around 50% occupancy rate and I am wondering if the age of the prperties is a major factor in the vacancy rate. I am looking at it from a distance and haven’t had the opportunity to see the conditions of the units to know if this is another factor, but I do know that the owners/managers are getting up in years and are ready to get out. I am seriously considering the deal. Can someone share your experience with me about your experience with scenarios similar to this.
THanks,
Mark
Howdy Mark:
The deal sounds great even for the age. I would need more info myself but sound like you should make an offer and get started investigating after the offer is accepted. The owners lack of care is probably why it is 50% vacant and not the age. If it is clean and in good it will rent at some price which will be lower than new. Location Location location again the 3 most important words in REI. You may not want war zones but somebody may. LOL
I’m with TedJr. I have never been asked how old my property is…folks want clean, safe, comfortable housing that they can afford and have well-maintained mechanical units.
Some paint, cleaning supplies/elbow grease, clean venetian blinds, maybe some new carpet go a long way towards these ends.
Keith
I would have to agree with Kd and Ted.
If it is clean, priced right and in a convenient location, you could probably rent a cardboard box.
The parameters that you are outlining sound like a win-win
Ditto!
Thanks,
Maybe since it’s my first deal I’ve just got the hebbie jebbies about getting into it without having a clear idea of why its not doing well. The properties are mostly small homes that have been cut up into efficiencies and I don’t have the experience to know the mindset of the tenants. I appreciate you pros helping us newbies getting into things.
Thanks,
Mark
How should I go about making an offer in this property? Should I just give the agent a figure or should I putting something in writing an fax it to him? What kind of stipulations should I include in the offer or would that be a seperate process when we draw up a contract?
Thanks,
Mark
Howdy Mark:
You could just call the agent and make a verbal offer and if they say put it in writing you may have a deal or they may counter verbally. The worse the condition and the emptier the lower the offer. Keep in mind that nothing is binding on either party until it is in writing.