What would you pay for this?

Rehabbing, Fix and Flip, Rental Properties
1
Brick, completely renovated 10 unit building New roof New windows (77) All window sills painted ALl apartments renovated 6-2 bedrooms and 4-1 bedrooms Total monthly rent roll $6500 ($650 per apt), can be increased for 2 bedrooms Taxes $4932 Insurance $4821 Oil paid by owner Fully rented Owner financing available
Some basic info not included in the ad. Area is mostly low income within the immediate vicinity. Up the street about 1/4 mile are mansions, this is a strange area where there are beautiful old (100-150 yr old) homes very close to some real crapholes. Hookers and crackheads known to be in the area though not exactly a terrible problem and it seems the city is getting that cleaned up for the most part. Building sold in 2004 for $206,000 and is currently listed at $589,900. I remember seeing it for sale about 1 yr ago for around $700,000 but I don't recall the exact price and strangly I can't locate the listing from that time on the MLS. Just found this on craigslist a few mins ago so I don't know the details or the motivation of the seller. He's offering owner financing so I may just figure out an offer and find out just how low he can go and what terms he can offer on the financing.
2

I noticed something really strange. I see this on the MLS for $589,900 and on craigslist for $549,000…wonder what gives.

3

Simple answer is that he’s trying to cut out the realtor when he has it listed on Craigslist. A $589 vs $549 sounds like a 5% commission on the $589 price. Usually realtors get the clients to sign an exclusive right to sell which means they get paid if the house sells period. Now if you do an exclusive agency, you only get paid if you find the buyer or some other realtor finds a buyer. Not such a good agreement and to be avoided if you don’t want to spend a lot of time and energy and make nothing back if the seller finds a buyer on their own. Maybe the seller hasn’t really read the fine print of that contract that was signed.

It’s either that or they just haven’t gotten around to lowering the price on MLS.

4

Rich,

A purchase price of about $270,000 would give you $100 per month per unit positive cash flow. Therefore, that would be the maximum that I would pay.

The owner is probably an experienced investor. He paid the right price when he bought this property considering the repairs needed. He is now trying to sell this property retail to a newbie or retail buyer who would not be able to succeed at a price anywhere near $549,000. I would suggest looking for a deal like the current owner did. You won’t find many of these deals on Craigslist.

Mike

5

I figure he is either cutting her out or has an agreement with her to have her not get paid if he can sell it himself. I dropped her a line to find out what’s up, that might just shut his plan down if he’s trying to sneak around her.

6

You could build a self storage warhouse for a hell of a lot less than this nightmare.

Benefits.

Metal building- super easy build
No heat
No electricity in building (lighting outside)
No plumbing
Pour a monolithic slab, no 4 foot walls needed ( building supplier has PE stamps for this type of construction in every state)
Best part: tenants don’t pay, you auction their stuff.

I have a few of these and as the economy goes down they fill up,
running 95% occupency now.

7

I would have to look for a while to find a good location for a self storage place, they just built about 4 really nice ones within the past 2 years. I don’t think I could find a good place around here for one, that ship has sailed.