looking to get my 1st multi unit deal.
The property below meets 1% rule, 280k purchase price and gross rent is 2800 per mo.
I noticed the area is little spotty due to slightly higher crime rate.
Old owner wants to cash out although would consider seller financing.
The house did not appreciate in the last 10 years,
I wonder why?
The rent seem to be on the low side and I increase it easily $400 per mo. when leases are up.
I am not very familiar with an area goalmouth visited before and its seems to have great beaches, attraction and stable job market.
Does this seem like a good deal based on numbers and location?
Appreciate an advise from local investor or realtor.
I'm an agent and an investor in the area. When I looked into these older multifamily deals (even the one you posted) and run the numbers, plus the aggravation of running these lower class properties, I prefer SFH's in B areas and C+.
My model is the BRRRR and suits my target numbers which is more than 12% CoC ROI.
As far as this deal: 70K per unit is a lot...especially for a old property like this. I would only concider it for 50K per unit, but again it all depends on the exact condition of the property, the deferred maintenance items.
Contact me if you would like to talk about the area, and I might propose to you either an off market deal that a friend of mine prepares to put on the market (If I remember correctly a 4plex and a duplex) or a different strategy that works for me at least with auctioned homes.
That is so funny that you posted this Alex because you beat me to the punch. I have had my eyes on this deal for a month or so now and saw the recent decrease is asking price. Although it does meet that 1 % and seems like a great opportunity, I agree with Pavlos' comment about it being too pricey per unit. Since you are in California I will let you know when I go see the property and let you know what I find out. (I work in Daytona).
Awesome Rainiel, let me know what you think. Not sure owner will let you to see units as its fully occupied. On paper it looks decent, but market is softening in Daytona Beach I heard.
From my research, the average price per unit on small multi family (<15) in the Daytona Beach area is anywhere from $50k - $60k depending on condition.