All Forum Posts by: Martin Elkins

Hello BP Members,

I am looking at buying an investment property, as you may have guessed. I am looking into multi-unit rentals because I feel they have better returns, in general. First off, is that even true?

I have stumbled across a listing for a 7-unit (1 studio, 6 1/1s, across 3 buildings) property in my area. It was built in 1930 and sits between commercial complexes on 3 sides, 4th side is open to a local highway. I am intrigued by it on face value but I don't know how to move forward with even finding the needed information. The listing agent will not release any financial info without a contract. It is also owned currently by a company that is involved with real estate. I always wonder why a person/company that invests in property would sell a successful property...

So what I'm looking for is:

What information do I need to find out to see if I want to move forward with a contract?

If I do want to move forward, how should I structure a contract to provide me maximum contingency options and protections?

Thanks everyone!

Hello BP Members, 

I am looking at buying an investment property, as you may have guessed.  I am looking into multi-unit rentals because I feel they have better returns, in general.  First off, is that even true?

I have stumbled across a listing for a 7-unit (1 studio, 6 1/1s, across 3 buildings) property in my area.  It was built in 1930 and sits between commercial complexes on 3 sides, 4th side is open to a local highway.  I am intrigued by it on face value but I don't know how to move forward with even finding the needed information.  The listing agent will not release any financial info without a contract. It is also owned currently by a company that is involved with real estate.  I always wonder why a person/company that invests in property would sell a successful property...

So what I'm looking for is:

What information do I need to find out to see if I want to move forward with a contract?

If I do want to move forward, how should I structure a contract to provide me maximum contingency options and protections?

Thanks everyone!

Thanks Jack. I completely understand as far as the showings go, especially when it's multi-unit, for all the reasons you listed. My surprise was mostly the other items, really falling into the category of "data." At the very least I would expect current rent rates to be given without needing a contract or LOI, but again, I'm green in this so I don't know what is standard.

Hey everyone, 

Super new to RE here.  I am just starting to evaluate deals and I'm looking at multi-unit properties for potential house-hacking if not just getting the most for my $$.  This is just an example but I'm looking at a 7-unit property that's 1 studio and 6 1/1s, all rented long term.  I have a family friend that sent me a few listings to evaluate knowing I was looking at multi-unit.

I had asked about the current tenants, rent rates, terms, etc and the response I got was this: "Listing agent will not provide any information about cap rate, net operating expenses, tenant leases or viewing until a contract is submitted. Contract can be written contingent on satisfactory search, appraisal and finance approval."

Is this pretty run of the mill?  Seems a little shady to not share the info?  I know you can structure the contract for all types of contingencies but I'm green on that too.  Just looking for guidance.  Thanks in advance.

Thanks Dustin!  I didn't even think to search the forums.  I guess I figured this was a more abnormal situation that it actually is.  I'll start my research there.

This is my first time posting so take it easy on me!  I've been getting really interested in real estate investing, in case my presence here didn't give it away, and I've been doing the typical newbie reading and finally getting to the point where I want to buckle down and start looking for my first deal.  Which leads me to sort of an odd question, or rather a question about the efficacy of an odd situation.

Unfortunately, there was recently a homicide at a home in an area near me.  This is pretty awful but I'd like to look at it objectively.  The home where this occurred is up for sale.  It is in a pretty nice suburban neighborhood and the crime was random (which is to say there would be no objective reason living here would be unsafe moving forward or tied to anything unsavory).  

Now to my questions.  I like data so if you have any to support your answer please share

1) Assuming first that the home is in good repair, no liens, nice neighborhood, etc etc....I assume that this house is going to be undervalued because of it's recent history.  Is there data that might confirm or deny this?  What do you think?

2) Intuitively, one might think that renting out or selling a place where someone was recently murdered might be difficult, but I would imagine that would diminish with time.  Is there any data to support wether or not the crime would have a permanent impact on the homes rentability or overall value?  If there is only a temporary impact, what would the refractory period be?

I guess this all boils down to:  Someone was murdered in this house.  I think it will sell for cheaper than it's worth and that I will be able to rent it out quicker than most people might think considering the events.  All things equal, buying a house undervalue is a good thing.  Do you think this is a good idea? Why or why not?

Thanks!