I was searching for my first deal and found what I thought was a steal. It was a 3/1 Duplex with two fenced in yards, remodeled, and nice decks. It was in a good area for demand. It also had a permit to put an additional unit (would I have to be a 1 bedroom) which I thought I could Airbnb. I put in the numbers at the rental rate for the area and turn out, this thing would cash flow like crazy. So I called he real estate agent. Turns out the current tenants are paying four hundred dollars below market rent because across the street is a Pallet Making Company with pallets thrown everywhere and it looks like complete garbage. There was also a church that would use the rather large gravel parking lot of the duplex as an overflow parking lot. So, my question for you experienced investors is if you ever ran into a similar situation and is there anything you can to ensure the pallet business cleans up and the church to stop using the parking lot as heir overflow?
And he reason for the low rents is because of the two issues above. According to the agent, they struggled finding renters at higher rates.
I would speak to them at the church and give them a two week warning that cars will be towed. I would put in regular complaints with the local municipal building inspector until the pallet company cleanes up their property.
@Thomas S. Would doing those two things allow me to increase the rent or is the pallet company across the street going to always bring down the value no matter how nice it looks?
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