So the multi-fam property is already positive on NOI. Was recently rehabbed. Has long term tenants that want to stay. Price is about or slightly under market. The downfall... not a great area of town and no parking.
I did a search on the deed site, looks like owner is behind on taxes but under $1k.
I can't figure out why someone would sell a cash cow...unless the rehab put them under or maybe other projects hurt them enough to have to sell one to make up?
For those seasoned investors, why is a property that makes money and is valued somewhat decent be on the market? I'm going to look tomorrow for any major signs of issues but for those that are experienced, what are your thoughts? Any specifics I should look for or ask about? Almost seems too good to be true but the neighborhood might pay a role...
@Johnny Kula At some point you have to stop acting like an engineer, and not let the next person take your deal. MAybe, just maybe, it's nothing more than a good deal.
There are numerous reasons for this.
Maybe they borrowed money to rehab at a high a cost and they can't refinance so they have to sell in order to get out. Maybe another deal came along with better returns or maybe they are just strapped for cash as not paying taxes suggests. You would have to know more about the current owners to narrow the possibilities.
I try not to worry about the reasons but focus more on the deal itself. Do your due diligence and if its still a good deal do it.
Thanks gents! I'm looking at it tomorrow with hopefully an offer to follow.
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