Multiple Evictions. Time to sell?
Well, I'm in a bit of a jam. I have a 10 unit building in Ohio that I need to make a decision on. I just had one unit busted for dealing drugs, so they were evicted. I've also had 4 other units sent eviction notices for being behind on rent. These were all inherited tenants. So I am possibly being hit with 5 unit turnovers at once, which will probably be around $5-8k each. The units rent for $450-500, but I'm really getting bled dry here. The past due rents are substantial ($5k), but I don't have much hope for collecting. Does it make more sense to -
a. Do the renovations, and try to get better tenants? I have the money, but it's a substantial amount of my savings.
b. Sell the place and take the loss? I could maybe hope to get what I paid for it, but I'd lose the money I've spent on renovations. I've put in close to $30k on a new boiler, roof work and other renovations.
Yes, I realize that I screwed up in my due diligence, I don't need to be reminded of that ;)
Most Popular Reply
Turning a property over (ie. increasing NOI) is THE way to make money in the rental business. Make your property perform better. This is assuming you bought it at a decent then-current cap rate.