…but I have been looking at purchasing a Multi-Family home in my Phoenix area. Those which are affordable and most likely to cash flow are not cosmetically appealing.
Assuming they required no major repairs or maintenance costs, and had positive cash flow, does anyone consider purchasing something that looks like this?
http://p.rdcpix.com/v01/ldddd0d42-m0m.jpg
http://p.rdcpix.com/v01/l395e0742-m2m.jpg
(These are priced at 80k)
(This is not even that bad considering others on the market) :flush
One might also assume it’s not in such a great area and tenants may be druggies. Pardon me for judging. :anon
Who cares what it looks like. Can you rent them? If so, who? Don’t assume, go knock on the neighbors door and see what the deal is. When you are talking to the neighbor, decide if you feel comfortable dealing with people like him all the time. Don’t buy if your too scared to pick up the rent check.
I don’t see anything wrong with the way those buildings look. Individual owners do not generally own luxury apartment complexes. If the numbers worked out right, I would have no problem buying something like that. I would not rent to druggies. Prior felonies or any type of current drug activity is a no no for me. You don’t want Police busting in the door on your buildings, do you? Trash attracts trash. Best to stay away from that mess.
Except for the boarded up window, I think it looks fine. What’s important with rentals is the cash flow, not what the property looks like.
Mike