Curious to know what your strategy would be for this potential deal. Duplex in Florida owned by an out of town Landlord. I visited the property and spoke with the tenants on one side. Turns out their AC has not worked for months and there are SIX non related individuals living on one side. Not sure how many are on the other side. Tenant also said they are pursuing legal remedy's against landlord. Roof is at the end of useful life as well. Property is in a gentrifying area bordering a desirable downtown and surrounded by new development. This neighborhood is starting to turn as well.
Broker says owner will not seller finance. I can purchase with a traditional loan but thought owner might see value in holding a note and being able to get out of the property since he has a bit of mess on his hands and doesn't seem to be dealing with it. (I have not been able to get a direct convo with owner yet)
If I can get it at the price I underwrote it will cash flow 12k per year after ADS on a 20% down loan and be a 18% cash on cash return yr 1 IF current roomers stayed. I imagine there will be considerable downtime in trying to get them all out and re lease it. Property is in good condition other than roof and AC.
With the current moratorium on evictions, I wondered what your all thoughts were on the risk involved with taking it on and dealing with possibly 12 different parties between the 2 sides and what kind of possibly creative offers you might present to the owner considering that risk.
Let me know if more info is needed for a reply;)