Bangor, ME · Member since 2017 · 72 posts · 19 votes
I am looking to purchase a 5 unit apartment building in a small town in Maine. I am getting a deal at 60k for the building. Appraisal value is 120k. 3 units occupied, two vacant currently. Building is in fair condition and in no need of any major repairs. Everything sounds good except for location. Its in a dieing town. The town has 1 gas station, 1 grocery store, 1 restaurant. Surrounding towns and cities are 10 miles away which isn't bad.
Only thing I am afraid of is getting tenants into this building. But in such a small town you would think people will only want to rent. This town doesn't have much to offer but the numbers all work great if I can keep the building full. Advice?
A 5-unit apartment building for $60K-- absolutely I'd buy it! If towns with better jobs are within 15-30 minutes, there will be someone! You only need 2, that's 2 tenants/families, definitely doable! If you can allow animals, that's one thing people will pick your place over someone else's, or a big thing down here is to include a WD in each unit, that's seen as a huge perk! Just make your apartments better, and they will be filled. Aggressively advertise, or even offer move-in specials! I don't know your area, but if section 8 is an option, that's another way to make it filled. If the closest city/town was an hour... it'd be a different story, but people will drive for a cheaper, nicer place.
Rockledge, FL · Member since 2016 · 493 posts · 427 votes
9y
Andrew,
If it's in Caribou you'd better know that market well. With 2 of 5 units vacant it's not a good sign. Make sure your numbers work at 2 units. If you are looking at someplace like Rumford or Bucksport I'd pass. Also, check thoroughly on deferred maintenance.
If you're prepared on all those counts then go for it!