Is buying a multi family 2-4 units renovated a bad idea?

Question

I was just wondering, a lot of the duplexes in my area ( Columbia,SC ) I’m seeing are already renovated, some in decent locations.

Because they are renovated tho it’s harder to low ball it or get it discounted and it would leave no value add opportunity for me.

So should I or can it make sense to buy a 2-4 unit property that is renovated? If so what other things should I be looking at and considering?

Aaron K. · Answer

If it offers a good rate of return go ahead, but don't lowball just to lowball otherwise you are wasting everyone's time, if the market supports their price they don't need to sell to you, if not then they deserve to be lowballed.

Joseph Cacciapaglia · Answer

I have plenty of investor clients that buy renovated or almost new construction fourplexes with tenants in place. You just have to understand you're not going to get the same kind of return that you get with a renovation. The clients I have that buy these are just more risk averse, and are focused on risk adjusted returns. They are usually rich people with high paying jobs or businesses, and they're looking for a passive investment. They'll still do perfectly fine on a total return basis in the long run, but may not get the kind of cash on cash return that a lot of people on this forum expect.

Craig Sloan · Answer

if you don't have a reason you need to buy right now wait a little bit. Prices will likely come down. You might get yourself a better deal on a renovated property in a few months.

Bjorn Ahlblad · Answer

I don't care if it is renovated or not, but it has to make financial sense to get me to open my wallet.

Adam Blachnio · Answer

@Jonathan Perez

Look for any upsides, check current rents vs market rents etc....

Is buying a multi family 2-4 units renovated a bad idea?

Is buying a multi family 2-4 units renovated a bad idea?

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