Please Help! 4 apt. and 1 unfinished store help.
Hello everyone my names is Aaron. I am very new at investing, actually Real Estate in general, and could really use some guidance. I have listened to all the podcasts, watched Brandon's webinar, and I'm starting to purchase the books everyone is suggesting.
This rental property is right beside my house. I live in a sorta depressed area, about 5000 people, with not a whole lot going on near me. We are about 2 hours north of Pittsburgh. There is no chance of crime in this area, the "cop shop" is across the street from us both and the houses in the area are OK. Let me know if you need any more info. I really appreciate your input in advanced, and when i say "new" I mean about 4 months of being obsessed with anything that sounds like investing but still picking up the lingo.
The Flower Shop:
Asking Price; 125,000
4 Apartments ( all currently have tenants)
3/1 $500 about 2 yrs
1/1 $445 4 yrs
2/2 $500 3 yrs
Efficiency $ 375 In and out often but sound like promising old could in it now.
There is 1- 800q.ft. space being unused currently. I am guessing anywhere between 500 and 700? any advise? my occupation is Retail Construction. I can build offices for nothing but my time, i just don't know the rent it would make or should i just rent out open space and they choose and build what they want?
Taxes $1167
Renters pay utilities except water and sewer under $ 200
I wanted to be on the safe side so i was thinking...
10 % Vacancy
10 % Repairs
10% CapEx
12% Property management ( Hopefully my own PM when i have enough properties) none where i live.
Owner pays for a dumpster ... i want to say $150 a month
small gravel parking lot on the lot ( i think capex should cover upkeep )
I have not yet spoke with any of the current renters, i am only going off what the current Owner is telling me.
The Property was listed through a local agent but was recently taken off the market. I am not sure why. She said she will be listing on craigslist and the newspaper soon. I am talking to her directly right now.... Is this a bad idea? Should i be using and agent or broker? I really don't fully understand this side of it.
I started talking to a guy clearing out the empty store space thinking he was a contractor building, and it ended up being the owners father and ended up calling the owners. They moved down south and are managing it from afar and don't seem to like it. They sound motivated.
The condition of the apartments are very good for my area. The owner says completely renovated..Electrical, heating plumbing. I believe them for the most part. I will attach pictures
The questions i can think of now are..
Do i have to go to an agent to make an offer? /should i?
I don't have a LLC yet. Is this bad?
Is this a bad deal
i keep hearing to have an exit strategy. Any ideas?
Its been for sale for probably a year.