I am brand new in this field and am just getting ready to start investing in properties. Now there is this seemingly great deal close to me, but I'm starting to wonder some things. It's been on the market for over 60 days, they are asking $179,500 for a 6 unit building, which appears to be a big old home converted to an apartment of sorts. It's 3,788 square feet, 3 floors including what appears to be 2 basement apartments, and 3 bathroom.
It's not listed as such so I'm not sure but it appears to be almost dorm like as in each floor would share bathrooms. It's a 2 minute walk to a very nice all female college. It's in one of the nicest areas in the city where some homes next to it are valued at up to $500,000 with the same square footage.
Now being that it could be small studios with shared bathrooms and rental prices in the area, I'm thinking I could at minimum get $450 a unit, which would include weekly maid service to clean all the common areas like the bathrooms.
But heres the thing. The public records show it listed as a 3 Unit apartment not a 6 unit place, so what kind of a headache could that cause me if I went ahead with this?
Does this sound like something to be pursued or should I be running far far away from this deal?
BTW, here is a link to the property:
@James Bynum Taking into account the other thread that you also just started, you are certainly in a very good position to start investing in SOMETHING. For a new investor though, this one could be fraught with too many potential headaches. You suggested it might suit female-only tenants? Coming and going at all hours - sharing bathrooms? 3 non-approved units? Are the the Basement apartments properly legal? Paying for a maid - really?
You said elsewhere that homes in your area are available for ~$80k; and also that you don't own a home to live in yet. Please, take your time. Don't be in a hurry. You have come to the right place to learn and ask. Keep asking.
Welcome to BP. All the best...
Check for any building permits done. Also check maximum occupancy allowed. Last check if all legal units.
@Brent Coombs , thanks for the reply and I'm glad you saw my other post too. I am trying to take it slow but also gain as much knowledge as I can in a short amount of time. I'm actually stuck in a rental for another 13 months anyway so buying a house for myself right now is still down the road about a year, unless I buy something and do a short term lease to rent it out until I'm ready, but I mostly wanted to scope out and see if what I'm looking at now would be something that a year from now might be a good purchase. I posted this listing because it's something that sounded like it could have been a great investment but there are also a lot of unknowns with it which could cause a huge headache very quickly. So I wanted to get some opinions to see if my suspicions were correct and anything I can do to check these out before even thinking about buying it.
The maid part I figure if tenants are sharing a bathroom I would need to hire a maid weekly to clean the bathroom and common areas that most buildings would normally not need. Or I could just come in and do it myself.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!