6 Buildings, 24 units, all 2 bedroom, 1 bath. As per realtor, 25% occupied, bank owned foreclosure. Separate meters, pitched roofs. Needs work, landscaping, maybe roofs, some kitchens, bathrooms, carpets, paint. Taxes are 1.1% of selling price. Insurance will be around $5000. Where should I start with this one?
I own the exact same type of buildings across the street, but 28 units in 7 buildings. I get $495 per unit. Mine were renovated 2 years ago. Separate meters.
Thanks.
A lot depends on funding. I would start by finding out which bank owns the property. I am not a fan of realtors doing the negotiating. Find out who to talk to the one that can say yes or no. Then I would invite them to see my property right across the street. I would explain that I have the management ability and knowledge that is required to operate his property profitably. Then I would ask him if there is a solution that could be worked out between your business and his that would be mutually beneficial to each of us. I would try to take it over with nothing down and a payment rate based on the 25%occupancy rate if possible. I would then fix up each unit and rent it out for excellent cash flow. I would also make a deal with your realtor for putting you on to such a great deal.
redhawk
The listing realtor is the person who provided the limited info on the property. My property manager has his RE license so he can push it through for me. But I will get the bank info, that is a good idea. Always creative people with good ideas on here. Thanks.
Great advice from Redhawk. You are the most logical and motivated buyer for the property. Cut a deal. How many other buyers are there who can handle that many fixer units at one time, in that area, anyway?
Good luck, Brian06, and let us know what happens.
Furnishedowner