High Vacancy on Apt. Complexes Investor Analysis
I'm just looking to get an opinion.
As investors or property managers, do you completely avoid neighborhoods with high vacancy rates, or would you consider purchasing an apartment complex in a neighborhood with high vacancy rates if the price is right?
There is one neighborhood I'm looking at where the vacancy rate is roughly 29%. The property I'm looking at is currently at 60% vacancy. If I were able to bring up the property to neighborhood averages, there would be huge cash flow and NOI Increase. The property needs a lot of capital improvements and can be purchased at a deep discount due to seller COVID panicking. The neighborhood is decent (B, maybe B-) just a little distant from the city and lower population density. All other things being equal, is this something I should look further into or is it something you'd recommend I steer clear of?