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Updated about 7 years ago,
Four units with below market rents and deferred maintenance
Hey BP!
I just did a walk through on a 4 plex. It just came back on the market today due to the buyers not meeting financial requirements. The rents are below market $400 each so there is plenty of room for upside potential. However there is a fair amount of deferred maintenance and I wouldn’t be inheriting the most ideal tenant base (The units reeked of cigarettes, and two of the tenants had large breed dogs). Also the current landlord couldn’t verify the rent role.
All of the pitfalls aside. It could potentially be a great cash flowing property if I play my cards right. This will be my first buy and hold rental so I don’t want to get in over my head right out of the gate. The listing agent let me know the the owner would be eager to accept a full price offer. So before I send in an offer are there and stipulations I should include outside the norm (inspection and financing). It would be ideal to buy the property vacant so I could make improvements and get a more quality tenants. I’m just not sure how I could go about it.
Thanks in advance for any advice you’re willing to share!
-Tony