Investor · Miami, FL · Member since 2020 · 48 posts · 25 votes
Hey.
I'm looking at a deal in Florida that is 100% vacant due to the property having one master lease for all 13 units, and the master lease ended now so it's fully vacant.
I guess the pro is that I can easily renovate and bring new tenants, the con is that there's a mortgage payment of $100k a year that will supposedly come out of my pocket if the property is vacant.
Another option is that I buy it all cash, which isn't ideal for me as it will tie up all my real estate capital and then cash out refinance once it's stabilized.
-- Have you had a multi-family inspector go over the place and give you a written report yet?
-- Have you had a sewer cam done yet?
-- Have you checked for liens yet?
-- Why not OWC vs master lease?
-- Have you had a multi-family roof guy (walk or drone) the roof yet? (how many roofing layers are up there, what condition is the actual wooden roof in)?
-- How much (Mold) is present in the exposed areas, and in the attic and in the HVAC ducting?
-- Will you Hammer Swing the rehab yourself or use subcontractors (do you have a Rolodex of local subs you have used before)?
-- What do local property managers (of similar sized, class and location buddings) say about, Max Rent, time on market, vacancy rate, and typical renter profile for the neighborhood?
Since it sounds like you have a healthy amount of liquidity, a good option could be a bridge loan to acquire and renovate the property, then refinance out once you've placed tenants and it's stabilized. In this scenario you could preserve most of your capital if that's a major concern.