Updated almost 11 years ago on .
Government Regulated 30 Unit Property
Hello All!
My business partner @Matt Wood and I have come across a potentially interesting deal (that we currently have very limited information on) and want to be fully prepared when we discuss more specifics with the seller. The potential deal is for a 30 unit property at 600k. Doing quick math, in order to hit the golden rule of 2%, we would only need to average $400/month per unit (current rents are one of the highly important details we are still needing to determine). The only other piece of information that we have now is that the rent rates are highly regulated by the government, which would prevent us from attempting to increase them in the future. While I know this is limited information, and I am not asking anyone to speculate on the deal specifics (not that I gave you much to speculate on), we are curious to get the opinion of others who have dealt with (or stayed away from) properties of this size with regulated rents. Is the fact that it is government regulated a reason to steer clear? Even if it hits the 2% rate and cashflows well?
We would love to hear any insights or experiences in this space!
Mike