Multi-family with $375-450/mo rent - Good Idea or Not
BLUF: Is it a good idea to invest in low income properties or is it better to focus on properties that will attract middle income tenants?
Good Afternoon Everyone,
After telling everyone I know that I am interested in investing in real estate a seller informed me directly that he is planning on selling a four-plex and a 20 unit townhome complex. They have provided all the operating details and costs but did not provide a price. The rents range from $375-450 and two units are subsidized. Even if they accepted a price which would result in a 12% return (I'm not willing to purchase anything that doesn't produce 12%) would tenants of this income bracket deter many of you from even being interested in this type of property? Please, keep in mind that I have a full time job and do not intend to manage it myself. On that note, is it difficult to get professional managers to manage these types of properties? Thank you in advance for any advice/comments.
Richard Talbott