Looking at an 8 plex

[Rich Schroeder]

Here's a bit of info, I haven't looked at this property yet. Hopefully I will be able to get in this weekend.

8 units (6 unit building, 1 duplex)
gross rents (based on my knowledge of the area): $4200/mo
asking price: $214k

Based on my conversation with the listing agent, the roof on the 4 car garage needs to be replaced. Part of the roof on the 6 plex needs fixed. Separate water and electric meters, the gas is paid for by the current landlord (which is probably why the property is about to be forclosed on). The bank that is going to foreclose is a local bank, which is good. My plan would be to install electric heat in all the units. Here's the kicker, though: all units except one are vacant. Good for me being able to rehab, bad because winter is upon us and it's going to be difficult to get the units filled.
Obviously I need to get a hard number on what it's going to take to get the place up and running. I think I can get a good deal on this property, but I'm don't want to carry an empty property all winter and eat the mortgage.

I guess I'm not looking for answers here...I know what price to get it at. I'm just waiting for someone to tell me everything will be ok with the vacancies. Of note: the rental market is solid in my area.

-stressed in Wisconsin

[Brett Patterson]

We see a lot of these end up in foreclosure beacuse the previous investor didn't think about an exit strategy. Single family homes can create cash flow while appreciating in value, and are much easier to unload when the time is right.