I got a lead on a 4-plex and after doing some research I discovered it has been sold twice in the past 3 years. It looks like a great property and I am about to plug the number in the BP calculator but does that seem a little odd that it has been in 'that many' hands over such a short time? It is a sturdy brick home with 2 recently renovated units. I am going to actually view the units (the unoccupied, renovated units) tomorrow. He also has it listed for a little less than it shows he paid (I don't know how much credit to give Zillow for accuracy on that though). I asked the seller why he wanted to sell and he said it was taking too much time from his business which just seems a little odd since it's being managed by a property management company. I am a newbie so experienced advice is needed.
I would check with the city. I have personally found that if a property has traded hands a number of times and if it has no problems (layout is fine, rentable area, major systems are fine), sometimes I find that there are zoning or restrictions as a result of the city.
I might also see if it's the property management company is the problem. Maybe everyone has been using this company and they just don't perform the way they should.
9 times out of 10 though, you're not going to dump a performing asset especially at a depreciated rate.
the seller could be motivated by a need for cash
Definitely good to be suspicious when a property turns over a lot.
It could be the seller needs the cash because of something else going on that has nothing to do with this. Or something more sinister.
That seems like a lot but it could be just the current owner has other unrelated issues. As mentioned take your time to check with code enforcement -- I would go see them and/or ask them to do a walk through with you...always good to be on the right side of that department anyway. Put extra time in due diligence which unless you are accomplished at it should include a property inspection.
I once closed on a house that had sewer liens -- paid them at closing only to find out a week later the house wasn't hooked into the town sewer and needed to be...turns out here if the sewer line travels within X feet of your house you still have to pay the minimum even if you are not hooked in...
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