Should you buy turnkey or fixer uppers? Pros and Cons anyone?
Hi everyone,
A business partner and I are on the brink of making our first joint venture deal but are faced with two different scenarios.
Scenario 1 - Buy a 4plex (New build - less than a year old)
Asking Price : 600,000$ / 4 x 2 bed,1bath renting @ 1200$ a unit.
Location : Grade A new suburb / residential
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Scenario 2 - Buy a 6 plex (More than 40 years old, needs new roof, gutted unit (renovations needed) and cosmetic work).
Asking Price : 525,000$ / 4 x 2 bed, 1 bath renting @ 900$ unit.
Location : Grade B minus / : older part of town with mix of commercial
I understand the concept of capturing equity in the scenario 2 but doesn't that get offset with the higher capital appreciation that you would get in Scenario 1 ??
Your thoughts...