Vacant Apartment Complexes? and why unlisted?

[Brooks F.]

I've seen some vacant apartment complexes, and it always confused me. I've now been presented an opportunity to buy a medium-large (44 unit) apartment complex... that is vacant. The numbers add up pretty easily- the area is rentable, fair rents, building seems decent. 

Now my problem is I don't understand WHY a complex would be vacant, void of major repairs. In this case however, while it could use some updates, the seller claims its fine . The weird thing though is the guy is really old (close to 80), and he has 11 complexes he's selling. 4 are vacant, and the other 7 are 20-60% capacity. There are no listings at the places that are even partially at capacity.

I did a little due diligence- there's nothing weird filed with the govt, no back taxes, no notices of it being uninhabitable.... just vacant.

I also don't understand why you wouldn't put a property like this formally on the market. I get unlisted apartment complexes with people in it, because you don't want them to know its for sale, but vacant?

I'm about to walk away just because the whole thing sounds "fishy", but I have read about people buying "vacant" apartment complexes when I search here. I love the idea of buying a complex like this, but it just doesn't add up. Can anyone on here weigh in? is it worth having someone inspect it? Help me understand!

Thanks much!

[Andrew Kerr]

Brooks F. I have never come across a portfolio that big (11 complexes) that is so distressed and with a such low vacancy.

But, I have come across several properties and portfolios in similar situation. There was one about two years back, around 50 properties (SFR & small multi) where the kids inherited it from the dad. They were all paid off and the dad self managed. The adult children didn’t understand real estate or care to learn. They sold it off and at the price they got, it was a windfall because it was all inherited.

I have also run across older burnt out investors 70+ years old that are just ready to let the property go, and you end up with a great deal.

Perhaps you make a offer, and start due diligence. Then really dig into it.