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!