#2- Advice on purchasing my first multi-unit building in Chicago

[Erika Carter]

Advice on purchasing my first multi-unit building in Chicago- Update #1

Please see my original post:

Hey everyone! I have an update:

Update #1

I was super excited to find a possible 3 flat building, which was newly listed on MLS, But my excitement quickly turned to horror as:

• Unknown property conditions of 2 occupied units
• Older, possibly original, electrical wiring that needed updating immediately (vacant unit had 1 electric outlet per room)
• Seller is deceased, estate now held by sister who lives in New York, who has never visited building
• Possible water/roof damage as warping and thick cracks appeared in stairwells/walls
• Older, leaking windows
• Questionable plumbing
• BIGGEST DEAL KILLER: EXPOSED ASBESTOS WRAPPED AROUND ALL PIPES IN BASEMENT!!!!

Better luck next time, my search continues! See you next time....

[Rick H.]

Problems are opportunities!

If you run away at the first sign of problems, you won't do many deals (perhaps none).

The most successful investors thst I know are in the business of solving problems in exchange for equity or other benefits.

Asbestos can remediated by either containment or removed by licensed contractors who specialize in this. I had a little house that gad a similar problem and I thought it would be a limitless money pit. But it was not!

The city of Azusa, CA connected me to an approved contractor who did the removal with guys in moon suits, handled all the disposal, transportation, and documentation. It only cost $11,000. Contractors were super helpful.

Given that it's somebody's problem, why not give it a second look, run the numbers, and learn to do something new and add value to a deal as opposed to just being "another buyer.?"