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Xi Guo
  • Investor
  • Orlando, FL
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High cap rate, not so great location. Advices needed

Xi Guo
  • Investor
  • Orlando, FL
Posted Jul 26 2015, 05:56

Hello all,

I would love to hear everyone's opinion on situations like this, since I am still figuring out what my level of tolerability is for deals.

Have a potential deal with high cap rate (20%) triplex. Each tenant with recently renewed one year lease. However the neighborhood is supposedly one of the worst in the city. I drove by twice on Saturday during the day and night. 

Day: fairly lively since its weekend, kids are playing outside, saw a few grown men shirtless, walking around. Several vacant units in the neighborhood.

Night: fairly quiet overall

Another issue was that I was able to visit 1 of the 3 unit, it was poor maintained by the tenant. excessive trash & foul smell

I am thinking about speaking with a local property manager for their opinion, I would love to hear everyone's thought here.

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