Lender · Tampa, FL · Member since 2015 · 63 posts · 44 votes
There is a 4-plex I am looking at that is not in the best of areas, but isn't right in the middle of a war-zone either. All four units are separately metered (tenants pay rent), with rents as follows:
Unit 1: $550
Unit 2: $495
Unit 3: $450
Unit 4: Vacant
Each unit is 2 bed/1 bath (rents are a fair amount below market, but two of the leases are up in 4 months. Rents could probably be raised to $550-650 based on the area.
The property is $105,000. It's just East of Nebraska Avenue, if you're familiar with Tampa and/or Ybor. I've included some pictures.
As you can see, a couple floorboards need replacing in the living room. this is one of the units.
On the surface it looks like a deal that would cash flow well.
Things to consider; What is the condition relative to tenants expectations? It is an old property how old are the systems? Is there deferred maintenance?
Are the current tenants paying? If would suck to carry the property for several months with no cash flow, waiting to re-tenant the place.
will you be dealing with section 8 tenants? If on market deal look at how many days on the market, if too many days on market something may be wrong with property or tenants because otherwise it might have already gotten snatched up since such a low price.
Sorry for the super late reply here, guys. The property was on MLS, but it was indeed listed for over 180 days. I talked to the commercial department of my office about the property and she pointed out that in some of the photos it actually looks like there could be some settlement issues. I don't trust the agent/property manager (yup, same guy) selling it and I've gotten some inconsistent information as well.
My original financing plan didn't pan out and I'm no longer pursuing the property. I did consider living in it for like two seconds, but it isn't quite an area I would feel comfortable living in just yet, at least not in the same building as people I rent to.
I also couldn't find a pulled permit for replacing the roof in public records meaning more likely than not it needed replacing, and decided that this along with everything else was enough to estrange myself from the deal. Thanks everyone for replying. :)