Minnesota
Hey BP,
I need some assistance from locals and others on a possible deal in Brooklyn Park, MN.
First, I'd like to state what type of investor so you can better understand my background and goals. B&H multifamily in A or B class neighborhoods with a value add strategy, I LOVE cashflow (as we all do) but will walk a way if the numbers make financial sense due to headaches.
There is a 4plex near 694 and 81 by the CarMax and bus line that that another investor is looking at selling. He purchased the property in 2011 for 220k and is wanting to sell to me for 235k (garage burnt down btw).
Ask - 235k
Rents - $3000/month
($750/unit)
Cashflow - $750-800 (or what people say "7 cap"
(4% vacancy, 4% capX, 8% property management, and etc)
Here's what I'm looking for assistance on -
Is this neighborhood crappy compared to other areas in Brooklyn Park/Brooklyn Center? B, C, D class?
Are rents currently under market? FMR seems to be $875-900 (units need work)
Would you convert this into section 8? (FMR - $1067 approx)
Can ANYONE else find a four plex under 300k?
***I KNOW one tenant defiantly smokes the green and I know another pays cash (never timely) and I feel like I'd have to flush everyone out and find all new tenants. What would you do onto of all this?
I'd love to do the deal, but don't want to buy a headache unless the long term potential is there OR I could add value and sell it off. Again, I typically do not invest in these types of neighborhoods but at the same time the deal seems to be a deal (price wise).
All/any input and feedback are appreciated.
David H.