Hello everyone,
Newbie here. No real estate experience. Just been educating myself as much as I can the past few months and I really like the idea of apartment buildings. I like learning about syndicating on bigger deals, as well, but I'm thinking maybe I should get some skin in the game first.
I've been looking at deals in my area and in my state and I keep coming back to a deal that's just a few miles from me (decent area) that I found on craigslist.
I noticed the listing disappeared quickly. I had saved it, and called the number listed to see if it had been sold already. He said it hadn't but he had taken it down because there was an issue with the title and he wanted to get it squared away before he put it back online.
Here are the photos provided in the ad and here is the text:
Excellent Investment Property 350,000
(6) Duplex Buildings
(12) 2-Bedroom / 1 Bath apartments
(10) currently rented at $480/month - probably could go up easy to $500 or $550
(2)kitchen fire damage - partially repaired
These units have been in our family for years, simply ready to turn into cash.
We are interested in selling and will negotiate a little, not interested in listing with a broker/realtor and not interested in a management company taking them over, want to exchange the units for $.
Call or come by to discuss, ask for Jimmy or Johnny
*info and directions to their used car dealership*
I work out of town but I called to see if it was still for sale and found out some more info about it. He said it is paid for. His father built it years ago. I asked why he hadn't repaired the fire damage and he said he was just tired of fooling with it. He said he had repaired the exterior, just not the interior. I didn't pry too hard but he seems pretty set on just getting cash for it. He also told me that they need to be painted (approximately 12,000 total), have 6,500 per year in taxes, and he pays the water for all units (approximately 1,000 per month). He also said he had started bumping the rent from 480 to 500 as each lease expired.
That's currently all the info I have. I had also asked about seeing an income/expense report for the last year. He said yes, but wants to show me in person. That's when he told me about the painting/taxes and that the water was the main expense. Two things I'm currently wondering about are, how hard will it be to install individual water meters in these units, and what caused the fire, kitchen or electrical. If electrical, the other buildings may have issues too.
Just curious what you all think about the deal or maybe which direction I should go from here. I've been learning as much as I can, via bigger pockets and other sources, it's just easy to get a little overwhelmed.
Thank you for your time,
James
