I’ve been looking to invest in a dilapidated multi family property that needs a lot of repairs but its in a very excellent area and in a very safe neighborhood. Only problem I notice is that it has a very very very tiny backyard space that’s more of a walkway than a backyard space. Should this be a dealbreaker? Would I have trouble reselling the property later on due to this?
Realtor · Santa Ana, CA · Member since 2014 · 131 posts · 111 votes
3y
The first 3 rules of real estate investing are…” Location, location and location “. Your potential purchase has that so my next big concern would be the repairs. Make your offer but give yourself plenty of time to do thorough inspections. Then find some honest general contractors to review your inspection reports, walk the property and prepare their bids. Be sue to include a strong contingency factor for repairs yet to be discovered. If you have the funds to cover the repairs and the required down time, then you really need to calculate the income and expenses to make sure that this project is profitable. Good luck.
Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
3y
Excellent neighborhood and safe area and pluses.
I don't think most people living in MFH care about the yard - on top of that they have nowhere to store yard equipment - so the yard really becomes the landlords responsibility. I have actually converted a few spaces like that to rock, simply so I don't have to deal with the yardwork
Realtor · Santa Ana, CA · Member since 2014 · 131 posts · 111 votes
3y
The first 3 rules of real estate investing are…” Location, location and location “. Your potential purchase has that so my next big concern would be the repairs. Make your offer but give yourself plenty of time to do thorough inspections. Then find some honest general contractors to review your inspection reports, walk the property and prepare their bids. Be sue to include a strong contingency factor for repairs yet to be discovered. If you have the funds to cover the repairs and the required down time, then you really need to calculate the income and expenses to make sure that this project is profitable. Good luck.
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Depends, what would your tenants think? I know the new owners won't care about back yard. If your competition offers back yards and you don't you'd probably have to adjust rent.
Rental Property Investor · Miami · Member since 2022 · 247 posts · 75 votes
3y
I agree "The first 3 rules of real estate investing are…” Location, location and location “. Today in Miami you rent a unit in a day. We don't have enough inventory. I will be more concerned about the repairs and quality you will take the units up to. Then, the rent you need to get for it to make it a good deal.
In our units in South East Florida parking and location yes, patio not a deal breaker.
I agree "The first 3 rules of real estate investing are…” Location, location and location “. Today in Miami you rent a unit in a day. We don't have enough inventory. I will be more concerned about the repairs and quality you will take the units up to. Then, the rent you need to get for it to make it a good deal.
In our units in South East Florida parking and location yes, patio not a deal breaker.
Real Estate Agent · Ft. Lauderdale & Miami, FL · Member since 2015 · 46 posts · 63 votes
3y
If the location is prime, the price is right, and your investment strategy works for this property, why not? Maybe you need to revisit the numbers for the renovation because that can be a huge problem (not finishing in time as it always happens, spending more money than what you had budgeted, re-visit the budget and add the number up for errors) that's the only big problem I can see happening. As a side note, if your place is small, make sure to have a KILLER interior design. Buyers overlook size for functionality and well done spaces. So, definitely invest on an interior designer