Updated about 9 years ago on . Most recent reply
Need help with 6 unit opportunity
Hello everyone I have been lurking on BP for about 3 years now and finally decided to do something about it. I was brought a deal last week on 6 SFH 5 of them are side by side ranging from 900-1000sqf. Rents on two of them are $500 and the other 3 are $450. The area it is in is a small town outside of Huntsville, AL but close to all the major plants on the river. They are asking $42sqf so about $42,000 a unit... But there is more the 6th house is located in a slightly larger city but it is completely gutted and asking $40,000(could be fixed up for 35,000) and could be sold for 110,000. So in total 250,000 for all 6. The 5 units have a waiting list to get in them. Does this deal make sense or should I pass? Is there a way I can structure this deal to make it work. I apologize for all the errors that you find.
Im getting quotes on insurance for all the properties as well.
Most Popular Reply
@Clay Chandler too be honest, I wasn't thinking of the size of the house, I was just trying to make the numbers work. Given this, you may consider asking for a discount, as @Jay Dewberry mentioned.
We are just beginning our REI path, so I don't really have the numbers off the top of my head, but for the a college town area, we are finding 1,000 square feet houses can be rented anywhere between $500-900.