What type of investor do I want to be?

[Damian Howard]

What type of investor I want to be?

So the Journey begins. I was able to view a multi-unit(4) last week and wanted to share my experience. With help from a friend realtor, we were able to get access to the 4 units. One of the tenants was home and didn’t know why we were arriving. The overall 4 units were not in bad shape, updated appliances and updated other stuff. Income and expenses on the surface seemed to be in line but this conversation is about what I am looking for as an owner. WhatI felt walking through each unit is that although they were in decent shape, they didn’t seem to be set up as a place that you would want to stay at for 6 months to a year or longer. The 1 studio apt was set up sort of like a hotel room. You had a kitchen, bathroom, living room with the mattress on the floor. 2 of the units were not occupied and the 4th unit although was a 2 bedroom that didn’t scream let’s stay here a year. Again I stress to you I can overlook those thing but I would think that although in good shape(the units) I would feel as soon as (one) moved in that this is just a temporary location for me due to whatever hardship one is going through.

Another issue is that the backyard area is a shared location for another adjoining building that has 4 units in it. That backyard had old 40 ounce bottles of beer in the backyard and other debris/trash that has been there for some time. I stress again that view doesn’t deter me because that may be the type of business that some real estate investors are getting into. In this case with the adjoining building, I don’t want to be in a position where you or the property manager is managing those tenants as well when you only signed up for 4 units…. Again, the front of the building seemed to be in good shape and had to maintain a certain look due to the historical society but nothing in that building due to the layout seemed to scream I want to be here for a long time. Avg unit in that building was priced at about $46,000 and it the city that I’m looking at you may be able to get a $50,000 single family home to rent out. Just walking into a couple of units may have changed my mind on what I want to invest in.. Don’t get me wrong, I will be visiting other multi-units but unless it’s a deal I can’t refuse I will be looking at something that screams “ I will be here for a while.”Hope this helps…..