Really Weird Property... Looking for advice

[Mackal Smith]

Hey everyone,

So this is my 3rd (and 4th) property acquisition in St Louis. I'm a local investor and really love the 2 properties I have. I've always said I really want to own properties I would not mind living in if I had to. This goofy property is sort of an exception to the rule however the numbers look so good that it is hard to pass up. That's where I'm looking for feedback.

This is a 3 family contained in 2 different buildings. I "L" shaped building (single story with a crawl space - no basement) has 4 bedrooms 2 baths and rents for 800/mo. The second is a 2 bedroom with dining room that rents for 550. The third is a separate house on the same lot that rents for 650 (2 bedroom, but huge rooms). One bedroom is downstairs, the second is upstairs but it is a gabled roof so the bedroom has minimal headspace on the sides *and* has a bonus space which could be a crib space, playroom, or another bedroom.

That is not the weird one though. That "L" shaped property almost looks like it might have been a series of 1 bedroom flop rooms at one point for migrant workers or something. Each room has an exterior door and they all eventually make up the 4 bedroom. To be honest, that 4 bedroom could easily be turned into 2 large 2 bedroom 1 bath units (there are already 2 baths and the plumbing is in place for another kitchen.

Here's the thing. The whole complex is 48K. So the numbers look great!. I had my property manager walk the property with me and the area is very blue collar with lots of families (definitely not blighted) but in this neighborhood, it is obvious that 75 years ago when this was built there were no building codes. You have nice looking properties setting next to less nice, but overall a B grade neighborhood. My property manager believes that she could get these rents easily.

My issue is that so far the properties I have bought are nicely laid out and easy to rent. This one is so weird it has me freaked out a little. The other thing is the buildings are obviously brick but they installed new vinyl siding in 2015. I used to install siding, so I can tell it was done well however I can't tell whether it was just cheaper to install siding that tuckpoint the entire building, and I can't tell what is underneath the siding.

I just got back from an afternoon of looking at properties. I offered on another duplex today, but I'm torn on whether to offer on this one also. Looking for advice.. how is your experience with weird properties? The thing about this one is that for the money, all the units are HUGE. It will take about 15K in repairs (new heating units and partial roof.)

Feedback welcome!!

thx