Apartments

11 Replies

What are some examples of a good deal on 4 unit apartments or 6 unit apartments??

Some just came on the market for 130000 it's not the best area and I believe they are in fair condition. 4units are for 130000 and two for 65000 by the same seller.
Thanks

That question is impossible to answer because it does not mention what part of the country/state/city, and doesn't take into consideration the financial considerations of the buyer.

The ones that you can buy an create a cash flow 

As a very, very vague rule of thumb, if you pay $35,000/door for rents of $600, whereby owner does not pay the utilities, you should be OK.  There are so many caveats I could write a book, though... 

Bottom line, since you have to ask the question, you likely shouldn't be buying apartments, Ivory :)

Ok I'm not gon but the apartments in I fully understand all what I need. It's in new roads Louisiana on the outside of Baton Rouge

Yeah @Ben Leybovich I think the guy is renting them for 450 now. I don't like the area anyway not good.

@Ivory Hammond

There is a reason that building in New Roads hasn't sold yet. I have been by there and that neighborhood looks very different than the remaining 98% of the community. You can likely cash flow on that building if you got it for the right price and were willing to deal with any headaches that come from the quality of tenant you are likely to experience there. I have talked to two other investors that own buildings in that small development and neither of them have problems keeping them occupied. 

You will not have much potential for raising the rents there though because you will always be limited by the surrounding properties and their rents. I was told the rents have been the same for years there and that market really doesn't support raising them. There is a duplex across from the four plex that the owner is ready to sell also. I don't know if it is on the market yet. 

@Brandon Johnson  

Yes both of them are on the market the duplex and the four plex. Now I'm starting to consider about purchasing these for cash flow. I woke up this morning thinking about this and will look further into it.

@Ivory Hammond

 Where exactly do you live? Just trying to understand how far you are from New Roads.  I looked at the 4plex a while back and while it is priced ok, I decided I did not want to make the drive from Baton Rouge every time I had an issue collecting rents or needed to take care of the lawn which I would do myself.  There is a local broker in town named Ken Major Realty and he would be willing to manage them for you if you wanted to go that route.  I believe it is his friend selling the two duplexes because I spoke to him a few months ago when he was considering selling and they weren't on the market yet.  I am just getting started and one of my mentors insists that I need to self manage rather than start out with a property manager which is another reason I decided to pass this one up.

The fourplex has been posting to Craigslist recently as a motivated seller, so you may be able to swoop in and get a great deal on it.  Let us know how it turns out if you decide to offer on it.

I live in Batchelor about 15 min from new roads, I'm thinking hard on it now will have to talk with a few people first but will have to make a choice soon 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here