How To Find Fixer Upper Apartment Buildings

Hello All,

I am interested in investing in fixer upper apt bldgs. Started working with couple of realtors.

I asked the realtors for fixer upper candidates under $500k in my area.

All he did is pulled listings from mls that meet the criteria of less than $500k and with in the city.

He gave me atleast 20 listings.

How do I figure out if it is a fixer upper from the listings?

Right now I am filtering the listings based on DOM (looking at one that has more than 250 DOM as a criteria for something wrong with the property)

Also looking at price/unit to see if it is less than market average.

Any other things that I can look for on these listings to identify a fixer upper.

Please give some guidance here. I am a serious investor please help!



Generally speaking exterior condition is a good indicater of interior condition, I have a list of 20 properties, I map them on a map program and can drive, get out and walk the complex and observe all public area's, take notes and some photo's and generally have a good idea of what has merits as a potential rehab property!

Then I have my real estate agent make appointments to see the interiors of the ones I narrowed my list down to, once I see the interiors and get all the financial property data for each property I go in and forensicly analyze the numbers against my repair estimates and cost estimates of rehab and determine which property will generate the best financially from a rehab!

I can easily see 20 properties in a day!


Gold River, Thank you very much for your post.
I did find an apartment building that has potential.
It is 95% occupied now but only half of the units are paying the rents the other half are past due on their rents for atleast 1 month.

This building needs a lot of fixable work like all carpets needs changed, update kitchen and baths. Needs new paint, atleast needs half new roof and all siding.

The financial info that I have is only the rent toll. I dont know the square footage of the units or any other expenses.

Please respond to the following questions.
What financial information that is needed before making an offer? (I am working on esrtimating the repairs)

The realtor mentioned that another investor who actualy owns couple of other properties in the same neighborhood had already made a low ball offer for which the seller didn’t even repsond. IF I end up with the same offer amoiunt based on my math. is it worth it to even put that offer? Is the realtor playing me here with a fictitious investor? please respond.

I had a realtor pull something like this on me once. He told me there were three (phantom) offers currently under consideration, so I should submit an offer of at least the asking price. I submitted an offer well below asking price because it worked with my numbers. The offer was accepted.

My guess is the realtor could be playing you. Even if they aren’t, only submit offers which work for you, not the realtor. If you do not get it, it is for the best.

WARNING, Potential Troll Ahead:
Reminds me of an old joke: How do you know when a realtor is lying? They open their mouths.

tgauchsin - Thank you for the post.

All - There are no comparables to see what is this property worth after fixing. The realtor mentioned that he searched for the last 11 years for a comaparable sale and couldn’t find any.

How do I evaluate what this property is worth after fixing?

The property is currently receiving rents from only 50% of the tenants. Estimating 50% of GRI as expenses and GRM as 6.5. Based on the NOI/GRM the sales value is $430k.

But, the property needs $250k worth of fixing to put it back in the market. My plan is to put it back in market after 2 years.

How do I figure out what its worth after fixing?

How much do I offer now? to make a decent profit for the effort went into fixing.

Thanks in advance for all for reading the post and any responses.

Happy long weekend.

Whether you renovate your home into an owner-occupied dwelling or purchase a starter with two or three units, you must start at city hall. Once you’ve found out what the zoning regulations and local building codes require, you’ll get a clear idea of what you must do, what you want to do, and what you shouldn’t do because it’s not cost effective. Assigning each possible project to one of those three categories will help you figure out your priorities. (See Chapter 5 for more on zoning and building codes.)

Thanks regards - Jensyn