Im fairly new to commercial investing, has anybody had any luck with this? ive been looking at a rooming house/duplex, rents 7 rooms for $125-$150 weekly.
100% occupied,owner pays all utilty, and everything else. Asking price is 179,000. I can get fairly good finiancal terms through local bank. Its in a big city, low income area with decling market. any advice or insight i should be aware of?
Good luck selling this thing when the time comes, they seem to sit on the market forever in my area. I think most people don’t want to touch them with a 100’ pole. The people that live in these things are the lowest of the low lifes, keep that in mind. If you don’t mind crackheads by all means go for it.
A rooming house/home whatever is more of a business - like a motel. It doesn’t trnslate into real estate loans and terms the same way an apartment house does, because you have so much more management expenses and issues.
Lenders look at it the same way. You would have to have some good, verifiable receipts and records, and even then - you are probably going to get commercial loan terms - which typically have poorer terms than real estate terms.
Thanks for info, i think you saved me alot of headaches. I was thinking about hiring a mangement company but i dought they would want to touch it, without fees that would cut deep into profit.
thanks