Should we pursue this property??? in Oregon
I'm at a crossroads about a 5-plex that's for sale. Hoping to get some opinions on whether my husband and I should move forward. Here's some background info:
5-plex. 4-1bdrm and 1- 2bdrm apartment. Definitely has some deferred maintenance issues and could use a cosmetic upgrade, badly! All units rented at a total of $2750 gross income each month. Property is listed for $225,000, and has been on the market for well over a year! At list, the mortgage, taxes and insurance would be around $1000-$1100 a month. The expense report I received had a lot of maintenance costs, which was apparently due to one of the units being remodeled. They didn't list mortgage on the expenses, but overall profit was around $17,000 for the year. I was concerned about a lack of the mortgage being listed, but if an offer is accepted I've asked for more detailed itemized expenses.
Since it's been sitting so long we thought we might be able to come in low. Sellers apparent bottom line is 220k. The numbers still make sense to be profitable at that price, but I'm concerned as to why it hasn't sold already then. It's not the greatest area, but they are starting to do some developing, and opened a big medical school there a few years ago. Comparables put the property value at around $192k. I feel like the potential here could be great! But it'll take some money and time.
Opinions??