I have 63 units under contract for 4.2M. The property is extremely mismanaged and the tenants are quite undesirable.
20 of the units are affordable housing tenants and 5 of them are on a master lease with this company who lets the homeless community use the units. (The shopping carts outside are a sight to behold.)
The dilemma i have is that I can’t decide if it makes more sense to embrace the c class identity this property gives the impression of, or put a lot more into the renovation, get better quality tenants and convert it to the B class property that the building (and the area) should/could be.
90% occupied, the yearly rental income is around 600k with 420k NOI.
If it were me I would try to bring it up to B+ class, if it is not in the middle of the 'hood anyway! Who wants to live in a slum?? Would love to hear how you financed it. Looking to do the same for the first time.