Worth looking into?-350k for 5 + Unit Apartments/Commercial Inc

Worth looking into?-350k for 5 + Unit Apartments/Commercial Inc

Member since 2020 · 2 posts · 0 votes

I am beginning my REI journey and have 1 flip under my belt but my goal is to have some rental properties. There is a property for sale that I drive by everyday and I am not sure if it's worth diving into/if it could be a good deal. I don't have a ton of information but here is what I do have.

listed 350k-On the Main Street of town.  4 buildings on the lot.  First building has a deli/convenient store below and 2 apartments above. 2 single family homes behind and a large 2 story garage.  Rent right now is apparently low and bringing in $3800 with potential for more. Have only been in the store below and it is in good shape and the other units seem to be in good shape.  Some work needed on the 2 homes behind and garage. 

Any advice at all would be really appreciated on if it’s worth looking into/next steps. Closing on my flip early August and will have some funds for a 1031 exchange

Thanks!

0Reply
29 views

2 Replies

Jump to latestLatest
  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    5y

    You'll want to talk with a 1031 QI such as @Dave Foster before you go too deep into planning around that. I am not a QI, nor do I claim to be one - but as a general rule you cannot 1031 a flip.

    Regarding this property, what do you stand to lose by digging deeper into it, vs what you may stand to gain? You could physically tour the property to get an understanding of its complete condition and determine approximate rehab costs.

  • Jon KellyPro Member
    Investor · Bethlehem, PA · Member since 2016 · 929 posts · 951 votes
    5y

    @Morgan Nandin what's your criteria to determine if something is a good deal? Why don't you run this property(ies) through the BP calculators and then you'll have a sense if it's worth pursuing or not... 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.