Pros and Cons of a 40 unit in lower income area

[Shane Jeanfreau]

Nervous about jumping on a good opportunity to purchase a 40 unit deal in a lower income area. The economics of this city is based off of fishing/oil and gas. Seems to me that systematizing a lower income area will be harder. This place is a little over an hour from where I live so ill be using property management. Any thoughts, experiences and anything else you know about running a smaller apartment complex would be helpful.

thanks!

[Hadar Orkibi]

there is nothing wrong with Blue Collar demographic.

With your description above it is impossible to give proper feedback.

How many people live in the town?

What is the supply and deemed for apartments in the market?

How is the location of this property in the market compared to the competitors?

What is the unit mix?

What is the occupancy rate in the building?

Did you talk to local Property management company so you can have a feel for the market? 

I don’t think systemising is the issue, the market research and comparing the property to others in the market is where you want to start.

Having a good property manager in place is key.

There are many other questions to ask but let’s start with these.,