First Value-Add Apartment Opportunity

[Josh Detweiler]

Hey guys, I've been getting educated about purchasing apartments for several months now and I while I recognize I'm at a point where I have a lot to learn and I don't know what I don't know I believe I found an opportunity worth pursuing and I don't want to miss out because of fear/inexperience.

Here's building- It's a 51 unit in a rural area (45 min drive from Philly/Conshohocken) with low crime/unemployment. The building looks like a classic value add, lots of differed maintenance on the outside of the building. It does not seemed to be managed well, property is a mess and has no online presence among other things. It looks like vacancy is low and I would assume a high number of section 8 based on the parking lot being full around 12pm on a weekday. Rents are about $150 below market, compared to a similar apartment complex 1 mile away.

The owner purchased the building in 1972 is 80+ years old and lives within a 20 minute drive, he lives in a moderate not wealthy neighborhood. If I had to assume he's keeping the building for the cash flow but doesn't want to or can't invest the money into fixing up the building. I want to be prepared to answer any objections like avoiding a huge tax bill or loosing his monthly cash flow. What advice would you give before I reach out to him? Thanks.