Need advice on purchase of a multifamily

[Ana Garcia]

Hi Everyone!

We are analyzing a multi of 13 units which needs a LOT of repairs. Pretty much everything on the inside (walls, floors, ceilings, appliances, etc.) needs to be renovated. And, of course, the tenants, need to be replaced as well. We have construction experience (we still plan to hire someone to do the work), however, here are some of our concerns and questions:

1. Tenants: What is the best way to clean the multi and bring in new tenants? The current tenants are month-to-month, C type tenants. There are currently 2 vacant units. I have learned here on BP that it is best to work on the common areas first. Should we then start renovating the vacant units to bring new tenants little by little? Should we raise rents right away to current tenants?

2. Distance: We are 2 hours away and will not be available to keep an eye on the day-to-day construction work. Our idea is to go check out the work every weekend, plus request pictures and updates from the contractor at least twice a week. We have no one in the area who could keep an eye on it for us. Has anyone been successful at managing work this way? Any advice?

Thanks for all your input!

Ana

[Ana Garcia]

Thanks everyone for your feedback!

@Mike Dymski We are leaning towards doing it all at once at the beginning. The advantage is that the construction is done in a more efficient manner, hence saving construction costs. The disadvantage is that we would need more capital and will have no rents during this time. You bring up all good points (we need to have many things lined up to avoid wasting time and money). I will make sure to listen to the podcasts you mention.

@Janette Nason How long did it take you to do all the work? What is the total size of the living area?

@Patrick Liska Great idea! I'm sure we can find someone interested in making some extra money and we can have some peace of mind.

Our next step is to make an offer. Let's see how that goes. Will keep you all posted.

- Ana