How to buy the ugly 4-plex across the street

[Austin Davis]

Hello All,

I just purchased three 4-plexes on the same block a couple months ago and things are going pretty well so far.  However, there is one run down 4-plex that is right next to two of my properties that seems to be keeping tenants from wanting to live on this street. 

It has always been a plan of mine to try to purchase this 4-plex as well and since I am not getting the tenant interest that I would prefer, I think I would like to approach the owner sooner than later.  I looked up an address on the assessors site for the owner, but that is all the info I have.

Questions:

1. How would you approach the owner of this ugly 4-plex?  Send a letter?  Wait for a For Rent sign to go up in the yard(maybe more motivated at this point)?  Ask around to get the owners phone # and call him/her?  Maybe a combination of the above?

2. Once you got in touch with the owner, how would you approach purchasing the ugly 4-plex without upsetting him?  Just introduce yourself as a new owner in the neighborhood and not bring up the purchase yet or just cut right to the chase and tell them that you are interested in purchasing it?

3.  I would like to keep the small reserve fund that I have, so I would like to pursue some creative financing methods such as lease option, seller financing etc.  However, I am assuming that since the place is rundown, the seller would be more interested in cash.  Would you have this same assumption?

This is a lengthy post, so don't feel obligated to respond to all of the questions.  Have a good day!

[Steve Vaughan]

Hi @Austin Davis.  Great work so far!  I like having groups of assets in the same area as well.  I might ask a tenant for the owner's phone # in a conversational manner. Try iand catch them while the're outside (vs knocking on the door).  Current tenants are fountains of info and generally love to talk (gripe) about what's going on with their property.  

When you get the owner on the phone, I would just introduce myself.  Say you've purchased a bunch in the area recently.  If they see or hear of anything shady going on at your properties to give you a call.  See where it goes.  They will probably divulge something.  Good luck!