Multi Family

[Frank Daly]

There is a 4 unit building for sale in my area. One of the units is a 3 bedrooms 1,535 sq ft, one is 2 bedrooms 1,170 sq ft and two units 2 bedrooms 850 sq ft, but only one of the 850 sq ft one is being rented for $400. The building is going for $110,000. My concern is should I make a offer on the building that is 1/4 rented? The owner is saying the 3 bed was getting $600 and the 2 bed 1,170 sq ft was getting $525 which are low.

[Michael Le]

Hi @Frank Daly, as long as it's priced like a 3/4 vacancy and you think you can rent it out relatively quickly you should consider it. This is where your value add will make you the most money. How are the rental rates in the area? Is the area growing? Why can't they rent it out now? Is it poor management? Can you do better?