Apartment Investing Questions
I am looking at an apartment building in Memphis. 20 units. 4 1 bed, 16 2 beds. It's a Class C-/D neighborhood. Low income. I am very familiar with the neighborhood and complex as I grew up around the corner. The crime in the general areas surrounding the apartments is very little. I actually feel safe walking around at night. If you look by the zip code you get a different story. The current owner owes about 30k in back taxes and is several years behind (4+). Since the building is being listed for sale, from what I can see she is making small payments.
The area is currently going through a redevelopment phase but its slow and property values still quite low. Not enough redevelopment to justify such a high asking price on a building that has severe deferred maintenance. The building would need an entire gut and rehab. At the price she has it listed, it's overpriced by at least 70-80k at best. What could I do from a negotiation perspective to get them to "see the light"?