Now that you locked the place under contract and given the things that need fixing, can you ask for a significant haircut?
If the price is low enough, the numbers make sense, curious to see how this offer pans out...
Best of luck!
Looks like a nice building.
Seepage- I would look into getting it sealed up on the exterior, could be an easy fix, and make sure downspouts are good and pushing water away.
I wouldn’t be concerned with a 21 year old boiler if it’s been maintained properly.
Windows- if you are paying for heat, I’d replace each apartment windows when they go empty.
What kind of rents will come from that $400k building?
@Matt M. Thanks Matt. As others stated, all of these issues seem to be very manageable. The rents should be around $1,100. The units are a good size and they’re in good shape with the addition of a parking garage, laundry and storage, so I don’t see an issue getting at least market rent with a possibility to either get above market or additional income with the stated amenities
@Brian Detlefsen Thanks Brian! I hear they are pretty hard to come by and it seems it will only get harder as they become more rare
@Jonathan Klemm thanks Jonathan! My realtor has been telling me pretty much what everyone on this thread has said which I expected; I figured it couldn’t hurt to discuss the deal and get a few additional opinions
@Travis Gulley thank you Travis!
@Lee Stephens - Definitely couldn't hurt to ask! I just wanted to make sure your agent was steering you in the right direction as well.
@Lee Stephens I own a couple properties in Elgin. One of which is a duplex with a separate cast iron boiler for each unit. I can attest to @Travis Gulley 's comment. The boilers are original to the building which was built in 1970 and they work just fine. I have an excellent HVAC guy that specializes in boilers. He told me the same thing Travis said in his comment. Glad to share his name if you're interested.
@Jim Brozny Thanks a ton, Jim. I’ll send you a message
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