My first multi-unit

[Jameson Drew]

Property located in Muncie, IN.  Local bank owned the note and just wanted it gone from their portfolio for $6900.  Too good to pass up.  Got on a plane to Indiana to check it out.

Property had sat empty over a very cold winter and the pipes burst due to improper winterization.  Asset manager thought it would be a very expensive rehab, hence the price.  Turns out, everything was mostly cosmetic.  Each unit is a 3/1.5, roughly 1000sqft a piece.  HVAC was still intact, but I added two swamp coolers to the units for renter retention (renters moved in 2 years ago and havent heard a peep from them since).  Drywall and pergo installed.  Total renovation cost of around $20,000.  Each unit rents for $600 and unit is fully occupied.  Taxes are $945 a year.  Property is locally managed for 10% of the rent.

Property is assessed at $44,000, but local realtors have given me an estimated value of $50,000.  Still, Im holding onto this money maker for some time.

[Account Closed]

@Jameson Drew

First, Congrats on the purchase!, Great find. The only thing that popped in my mind was you said you haven't heard a peep out of the tenants. My questions to you are:

1. When was the last time you came out to see the property or when was the last time someone, aka your PM, went to look at the property? If it was your PM did they send you pictures of what the prop looks like?

2. When was the last time someone put eyes on the inside of the property? Do you have routine maintenance done? Furnace check, change filter, A/C checked, gutters cleaned, snow removal, etc. 

Please don't take my questions in a bad way but I see a lot of out of state RE investors buy out here and then just look at there operating reports from their PM's and forget to  consider what the appearance of the property, inside and out, may look like 2 yrs later. 

Tenants being quite may or may not be good thing.