A few months back I sent a letter to an absentee property owner of a 6 unit brick building that had been run down for years. Initially I was interested in purchasing, renovating and leasing the units out - there are (3) 2 bedroom/1 bath (approx. 1000 SF ) units, (2) 1 bedroom/1 bath units (approx. 750 SF) and a office unit on the ground floor (approx. 750 SF) , these units would rent out between $950 and $1,300/month - however, the owner was not interested in selling but she did offer the option for a triple net lease.
I understand the basic concept of a triple net lease however this doesn't seem to be a typical set-up in the area that the building is located in. Also, I am concerned about how long it would take to recoup my money as well as the risk involved. The building is a complete gut renovation and with nearly 5,000 SF of building requiring utility upgrades as well as running all new MEP's throughout the 6 units I am already pushing the $500K point.
Wanted to reach out and see if anyone has any knowledge on whether this deal is worth pursuing - at this point it seems that she is looking for someone to assume all risk and give her a brand new building with zero effort involved.
