Low income small apartments...

[Paul Juell]

I am looking to acquire a small (12-20 units) apartment building. Most of what I’m seeing with a good CAP rate and potential seller financing are in lower income areas. Does anyone have any advice? Am I looking at a huge tenant nightmare? Turnover etc? My intent is to do some rehab, increase cash flow (rents, utilities, etc) and resell in 12-18 months.

[Brandon Abbott]

@Paul Juell when you say good cap rate, what does that mean? If all that you are finding is class D properties with your desired cap rate then you should lower your cap rate expectations. What market are you looking in?