I'm looking at 3 deals, and would love your thoughts on them

[Leo M Christensen]

I'm currently the owner of 3 units (doors) in some of the major cities of my country, Denmark. My situation is this. I quit my job in order to complete my BRRRR project which will be done mid january. I've found a good team around me, one carpenter and allround handyman for rehab and a guy who has 88 units (doors) currently. It's a good team, even though the other investor is pretty diluted in various businesses and thusly not completely focussed all of the time. This is where I believe I contribute to the team.

I primarily look at multifamily with 6+ units, because I'm not able to get loans for SFH do to by debt to income ratio, and this brings me to the three deals I've found.

deal a)

A foreclosure deal in a rural area with 9 units where only 2 are currently rented. It's rent ready and in good shape all around, however the previous owner was a bit of a crook and mistreated his tenants. 

The total m2 is 875m2 and best rent scenario fully tenanted is 555kr (86$) per m2.

This by far the cheapest, but empty and we would have to rebrand the place repair the bad rep the place has currently.

deal b)

This is a fully tenanted deal in good shape on the mls. It's about 20 min drive from a bigger city and a 14 unit property and has 825m2 doing about 833kr. (128$) per m2. The price on this (or the price on the material) 7.400.000kr. (1.138.000$) and looks like an ok deal, if the price can be negotiated. 

Deal c)

This is in center of a midsize city that universities ect. Its 10 units build in year 2000 and currently has a contract with the government that provides tenants with special needs which makes it 100% tenanted all of the time. It's 691m2 an makes 763kr. (117$) per m2. It's by far the priciest at 9.200.000kr. (1.415.000$) however in the material they say that they are willing to sell if we pay approximately 150.000$ and take over the existing loan of about 9.000.000kr. (1.385.000$)

So to recap, I'm looking at three deals that are very different, but in each their own way attractive.

I would love hear your thoughts and provide any information you might need.

best regards

Leo

[JD Martin]

Disclaimer: I know nothing about Denmark other than it's a beautiful country, most of its people are happy, and it's really flat. And it borders Germany and the North Sea :)

Given the choice between MFH in rural or urban areas, I'd almost always go urban. The trend worldwide - not just in the states or Europe - is urbanization. Are your total rent scenarios per year or per month? I assume per year, when I was doing the math. None of them would be great deals in the US - example, 3rd place looks like it brings in $80k/annual on $1.4 million; that would be considered a poor return here. But without knowing what kind of returns are typical for your area, I don't think anyone can say which of those is the best deal.

Based on my admittedly limited knowledge of the continent, I would say that your lowest risk would be the urbanized building - quite new, accessible to different types of populations, not constrained by lack of transportation, no vacancies.