12-Unit Opportunity currently owned by a bank

12 Replies

Bank owned property for 5 years. Been under property management for 2 years. Currently only 2 of the 12 are occupied. It has a new roof.   Current rent on the two is $425 each.  It can easily support $550 rent once some improvements are made. I asked why after 2 years of management only 2 of the 12 are occupied and the manager's response was the owner hasn't wanted to invest to get them rent ready.  The manager also says I'm the only one that's called asking about it so far.  Asking price is $162,500.  

If we go really crude here, $550 * 12 units * 12 months *50%.  $39,600. It seems like a good opportunity. Do I tie it up at $162,500 and proceed with due diligence? 

Seems like short money, put enough contingencies in ( subject to approved walk through, inspection financing etc ) and I wouldn't be worried about tying up the cash, seems like short $ for good rents. 

@Kris Fox the numbers alone look good...but yes..do your DD and take along somone who knows the multi unit business a bit more...put a robust contingency in your offer so you can back away if you need to. 

I would offer them around $12ok or less. The bank has had it for a long time and it sounds like you have no competition