First property turned into multiple property opportunity
Hi all,
So I put up some door hangers "will pay cash" etc. on some distressed properties in a neighborhood I lived in for 20+ in in Central New York. Got a call back on a single family that looks promising at first glance. Now, I've got a little over 100k ready to deploy and was excited on the potential of the house I got a call back on. Finally in the realm of being able to lay down all cash and flex some buying power... the single family could be had for maybe 50k, put in 15-20k in rehab and rent out for ~$1,000/mo. Turns out this fellow also has 3 other properties that he wants to let go of in the same neighborhood(2 on the same block); 2 duplexes(neighboring lots) and a triplex around the corner. I assume the rough (market)value on the duplexes are around 100k each and the triplex a little bit more. They all definitely need some work so in theory I could get them for a good amount less. Instead of just looking at a single family that could either be flipped or held, I've now got 8 potential units that he is willing to part with all at once. He said he's getting older and needs to free up his time to take care of his mother. Wasn't actively trying to sell but had been toying with the idea, score for the door hangers.
I have no idea how to proceed, whether it's stick with the original single family, go for 1 or two of the multi families, or try and take them all off his hands.
For what it's worth we're currently renting in the NY metro area but have purchased and sold a house in this neighborhood in the past. Been looking for that first investment property to get some cash flowing and then get this opportunity popping up out of nowhere. A little overwhelmed with how to take advantage.
We've got the cash ready, both my wife and I have credit scores hovering around 800 and we were already pre-approved in our area for $850k. Would love to hear what others have done/would do in this situation!
Thanks!
@James Reed, go in all in, and purchase the whole 8 units for buy and hold. Find partners, get it done!
Use part of what you have for a down payment to the owner ( keep some in reserves for unexpected issues) see if he will carry the remainder of the loan for at least 5 years or possibly the life of the loan depending on his age and what he is needing/ wanting out of the deal.
@Aaron Gilbert interesting idea