Is it wise to buy 1/3 of a 100 doors property? (mgmt priorities)

[Elad Inbar]

Hi,

I'm looking at a deal to buy 34 units out of 100 units. The deal looks, good, the seller offers financing, the property is 100% occupied, cash flow is solid, the entire property looks well managed and maintained.

The challenge is the management company, leasing office, etc. belongs to the owner. So I wonder if the whole thing is just a big conflict of interest waiting to explode in my face... (When 2 units are vacant, one on my side, and the other on their side, who are they going to lease first... I don't have a way to force appreciation as rent is set, and HOA is in place and probably won't allow me to do what I want, etc. etc.)

Thanks for your thoughts on that!

[Spencer Gray]

If you are having reservations about the complexities this deal then a future buyer will have the same. Think about how you will exit this deal. If it were me I would pass and go on to the next deal.