Buying Multi Family in college town...after school has started...
Location: Ames, Iowa
Property: 4 plex multi family, about 2 miles from Iowa State University
My overall question is, how hard is a rental to fill after college has started in Ames? I hear the sales market comes crashing down in winter, but there are clearly other people besides students that need rental housing. 3 of the units are rented through July 2019. 1 unit is vacant.
Unit 1: 2/1, rented at $725. Basement unit 1,064 sq ft, updated in 2016.
Unit 2: Efficiency, rented at $575. No work to do here either.
Unit 3: 2/1, 1,212 sq ft, rented at $500 to long term tenant. Yes, $500! Tenant also takes care of lawn, garden, and shovels snow in winter. But...$500! Rents would need to go up significantly, and probably $2-3k to turn over apartment at end of lease. Updates would include paint, flooring, ceiling tiles (I still need to see whats up there behind this false ceiling).
Unit 4: 2/1. Vacant. Needs cosmetic updates to rent out. New carpeting already. Not sure why they started with that update. This would be an October rental, so probably not a student rental?
Newer updates including a steel roof, metal siding, furnace, hot water heater, some windows, and appliances all within 2-4 years. Landlord pays utilities to the tune of about $230 a month for building (water, gas, garbage). There is also a detached two stall garage that is not being used, which could be updated with a garage door opener and rented out to tenants, or anybody that wants to rent it.
Anyway, we are in negotiations. Wish me luck and/or advice if you have any for the Ames, Iowa area.