what would you do?

[DeWayne Mann]

to good to be true?  out of state investment.  lender owned.  high crime area neighborhood, but holds good income to low income  households and going through revitalization through 2020.   low income renters at the moment.   poor management.  low occupancy rate, below 10%.  high unit count.  90+  .  in need of rehab, but sound building.  very cheap, under 500k.  in negative cash flow presently.

management is taking a huge cut and double charging for maintenance and landscape.  

these are the steps im thinking to take, please be critical.  

LOI, investigate property, due diligence, inspections,

if we want it, get in contract, investigate new management 

buy, Implement new management and rules, tenant screening, rename, start rehab

evictions commence ASAP for underperforming units.  police patrol and pm security in complex to show change and keep rif raf out.

new marketing and face lift and landscaping.

property stabilizes with occupancy and rent increases

purchase and rehab costs 1 million.  future value if all falls into place 2.5-5 mil.  

goal:  to make it a safe place people want to be,  and raise children.