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Updated over 6 years ago,
Good value-add deal. Tenant challenge. Advice?
I just got access to an off market deal for $150K. Its a 1550 sqf duplex, looks like its in pretty bad shape on the outside. Its been cited by the city for siding repairs and yard neglect. Comps for equivalent properties in the area or in the high $300k. property is currently generating $1400 a month, though can easily generate $2800-$3000 with good repair (based on surrounding comps). Seller will not let me see the inside of the property, to "not disturb the tenants". It might be a full rehab + HVAC scenario for all I know. This would be an out of state investment, so there is an added challenge there.
The issue is that this duplex is occupied by tenants who have been renting the place for many years. How does one handle a situation like this for a BRRR strategy?
Also, I don't have a super solid team set up in that location yet, which makes me somewhat nervous to jump into this level of unknown.
Thoughts?