That's the trouble, it will be difficult to increase rents. I would do the improvements because they need to be done and I believe it's the right thing for the long term viability of the investment.
They are all Section 8 with 1 under a different program. There are little things I can do to the interior that could get me an extra $5-$10 a month, but Orleans Parish is not straightforward in how they determine the amount of the voucher. Just because the max for a 3 bedroom is $1300 doesn't mean I'm gonna get that. Could be $1100 and part of the variable is how much the tenant has coming in through a job or what she collects on her kids.
I don't see it renting on the open market, though he had one tenant in there who worked for UPS who was a cash payer, but was trouble and had to be evicted.
The building is being "wholesaled" by a fella from the local REIA for another fella from the same REIA. Seller needs to get out because foreign, silent partner/investor is ready to be paid by 1/31/19.
I haven't spoken with the wholesaler in a couple of days, but put a message out to him today.
In any case this has been a great conversation as this is the first 5+ multi that I've considered and it has been helpful in understanding how it's priced differently than single family or small multis.
Thanks.
@Mary M., @Tchaka Owen
