Saw deal... how bad could it be (250k 8 unit.)

4 Replies

I saw this mult-family pop-up and I am wondering just how bad it could be.

My current goal is to clean up some personal finance, but I keep looking at properties to try and keep up with pricing.

address:

3225 Fordhaven Rd, Louisville, KY 40214

There was another 4 unit on the same road as this one that came up for sale for around 180k.

If someone is in the Louisville area, then maybe they can explain why this is either a great deal or a disaster.

Note: I am not an agent and have not affiliation with the property above.  I came across it on realtor.com

Thank you

It's not an area where you can expect appreciation. I actually own a property not far from there. As long as you have an interest in cash flow to hold for the long haul, you should be fine. That said, you can expect this property to have problems like: no functioning HVAC, electrical problems, old water heaters, low rent, old appliances, worn carpet/torn linoleum, leaks, etc.

Sometimes the rents are not able to be raised for that block, or you may not be able to justify raising them enough for a good return after repairs.  Call around and consult Rent-o-meter.

Good luck!

If it really is 8 units it will not be good, there will probably be a ton of deferred maintenance so the low purchase price comes with strings attached that you will have to fix a lot of things to avoid being a slumlord.

looks like rent range is between 500-650 for 2/1 on that block. 

250,000/8=$31k per unit. Seems high, depending on what work needs to be done. Looks like it’s close to 2% but be careful and KNOW what your expenses are...... like others have said rent will stay low in that area and will limit your potential for “appreciation”. This is a long term hold, unless you get a way better deal on it 

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