Low Income Apartments

[CJ Sanders]

So I just recently ran across three apartment buildings in a low income area not too far from where I live. First off, for those of you that have or have had low income apartments, what are some of the issues you faced with them? They are pretty dated but are currently renting between 500-575 a month. They could stand to have the kitchens and baths updated along with paint and flooring, but is it worth it to dump a bunch of money in updating a low income area? Even at the current asking prices, figuring for a higher than normal vacancy loss, I think they would have great cash flow. I just don't know what kind of headaches are involved with low income areas. Any input is appreciated. -CJ

[Jerry Tuzil]

they are basically the same headaches as any other multi family housing units. the worth is the ROI you would be receiving after re-hab. I have bought and fixed up hundreds of units on the South side of Chicago some have no problems and some have problems but there is no shortage of renters. you just may have to set aside a little more reserves just in case.