Advice on a real estate deal.
I am hoping for some advice on a deal I am considering. I have the opportunity to purchase rental properties from a family members estate. I currently live in one of the rentals and have essentially been managing the properties for discount rent since the family members death 2 years ago.
The properties are in Long Island, New York they are appraised for $400-425k it is 2 -2 family homes on 1 deeded property. The condition is rundown mostly due to delayed maintenance, homes are over 100years old.. Needs over all updating. few major repairs are replacement of original windows in 1 home and converting to gas in other home.
2 apartments are currently rented to model tenants who have been there 10years but do not complain about lack of Maintance and repairs. One is empty and I live in the other.
The deal we are negotiating is $380k
With windows replaced prior to closing
Sellers pay closing cost 15-20k in ny
Taxes are 14k
Rent estimates from appraiser are $1200 - 1400 for each unit.
2 long term tenants are paying $800!! Rent never raised and all month to month with no leases.
I'm sure you all have opinions and I would love to hear them all!! I know the houses well because I spent my summer since my teens working on the properties and now living it it. It is a rental neighborhood. Mostly middle class and rentals are rarely vacant and completion for apartments is stiff.