All Forum Posts by: Troy Luster

Jim Wilcox All good points. Don't think this property meets my criteria at any price. Not worth the risk of finding out what's really wrong after I own it. I would like to help turn it around just to get started with 4 plexes though.

Jaysen Medhurst thanks for the feedback. In the current condition, the property may be worth $50-$75K. Asking is almost twice that with one unit rented, if you can call it that. My thinking is either the owner is in bad shape, doesn't need to manage the property, or just had had enough. If I'm willing to put my own money and time in, it could work...

Jim Wilcox good advice!

I missed out on a fully rented 4 plex that was right next to this one. It was around 1.2% when I did my analysis. It sold at 1.4%, which I think is standard for this area. Plus rents were low. One of the tenants told me so. I'm really kicking myself... The new one, which probably sold once they saw this one, is listed at a similar price. But it only has 1 unit rented on a month to month. I'm not really considering buying it, but proposing some form of cooperation. I'm proposing to be added to the deed (I would have to be in order to manage, my firm does not do prop management), be responsible for getting the property to 100% occupancy, maybe doing some rehab, and split some % of profit. But not really interested in profit. I just want to get started and get the experience. What do you all think?

@ Jim Wilcox. Thanks for the response. I think that the supply of MF is so low in this area, that they think they can sell at a premium. And, someone who doesn't understand how to evaluate a property, will probably end up buying it. I may have to find one in severe need of rehab that I can buy dirt cheap. I drove past one over the weekend. Hopefully the bank will deal.

Thanks for the response! It is rented. Not too sure of terms. Don't think rents could increase without affecting vacancy rate. I couldn't believe they were paying $700.

Each side has 3/2 with 1 car garage and unfinished basement.  Units are 1200 sq ft.  Rents are $700 each side.  Both units are occupied.  Renters pay all utilities.  Neighborhood is B-/C+.  There are only multifamily properties on this street.  It seems as if the rents are maxed out, and could not be increased much without owning all 20+ units on the street.  Asking price is $130K, but this is high considering age (built in 1991), location, repairs needed, and the other properties around it.  One unit will definitely need carpet and minor drywall.  The basements/garages are tiny (600 sq ft) and only a small car would fit.  This property barely meets the 1% rule, but this is common in this area.  Assuming a selling price of $120K and 20% down, monthly cashflow would be $222.76/month.  I have some experience with single family, but wanting to get into multi family.  In this area it seems sellers want a premium for occupied properties.  What are your thoughts?

@ Larry Ashlock I know a few property managers. At least one who specializes in multi-family. I'm also on the lookout for a 4-plex or duplex.