Rental Property Investor · NY · Member since 2016 · 130 posts · 16 votes
Hi All,
I currently own a duplex and quad and am now actively looking to jump into purchasing a larger property in the NJ/PA area. I have my eyes on a 23 unit in PA.
While I haven't seen it physically yet, the provided proforma looks good. However what strikes me as odd is ownership has changed hands multiple times in a short span of time. The history is below. Not listed below is the current owner who purchased the property for about $910,000 in 3/16 and after making improvements and raising rents is selling it for $1.280,000 (recent decrease from $1.33M)
Rental Property Investor · Gulf Breeze, FL · Member since 2014 · 1k+ posts · 733 votes
9y
Nabeel Mahmud - interesting observation. I don't know that I would have picked up on that, thanks for the altering view as I'm learning more about mid MFRs. is it possible these transactions follow that market's cycle? Was Owner C's purchase from the bank/foreclosure?
Full time investor · Cincinnati, OH · Member since 2013 · 405 posts · 312 votes
9y
@Nick M. - I would call a local realtor or property management company and get the scoop on the place. You can also use google maps to find some of the neighbors or neighboring businesses and ask them about the property. That may save you a trip.
Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
9y
The first thing that strikes me as a red flag is that the current owner hasn't even owned it for a year and is looking to sell for a $300k increase on what they paid for it.
Lender · Nat'l Commercial Mtg Lender - Round Rock, TX · Member since 2014 · 916 posts · 235 votes
9y
@Nabeel Mahmud It will depend on the investor's strategy. Many commercial loans are typically 5 year fix and might be ballooning or the rate is adjusting or the pre-payment penalty is no longer in existence; so you will see some investors decide to sell at the five you mark.