Commercial Multifamily but weird setup
I'm looking at a 7 unit apartment building. I would call it a C property in a B location, so I think there's potential for forced appreciation. The real hangup is the building is really a 6 unit building with Mobile Home parked behind it. I feel like the trailer really detracts from the property/location. If I were to purchase the property, my real desire would be to have the trailer removed. But how can you just say goodbye to $350/month rent? Because it's a commercial multifamily, I assume you would be losing a ton of equity in losing the income. And I don't think getting rid of it would allow me to raise the other 6 rents enough to compensate. What would you do?
Most Popular Reply
@Jared Ebert
It totally depends how much you pay for the property. Price your offer based on the income of the six units alone. If you choose to remove the trailer it will not be a hit.