Investor · Atlanta, GA · Member since 2017 · 136 posts · 54 votes
I missed out on a fully rented 4 plex that was right next to this one. It was around 1.2% when I did my analysis. It sold at 1.4%, which I think is standard for this area. Plus rents were low. One of the tenants told me so. I'm really kicking myself... The new one, which probably sold once they saw this one, is listed at a similar price. But it only has 1 unit rented on a month to month. I'm not really considering buying it, but proposing some form of cooperation. I'm proposing to be added to the deed (I would have to be in order to manage, my firm does not do prop management), be responsible for getting the property to 100% occupancy, maybe doing some rehab, and split some % of profit. But not really interested in profit. I just want to get started and get the experience. What do you all think?
Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 602 votes
9y
@Troy Luster I agree that it is a creative solution, however, I don't see an owner likely going for it. As @Jaysen Medhurst has stated, what value are you providing an owner? Maybe you can use your skills to get it fully rented but the owner could just hire any property manager to do so without adding you as co-owner. Find out why the property is not occupied, there is a reason, and use that as a bargaining chip to an acquisition. However, only purchase this property if the numbers make sense for your buying criteria.
Investor · Atlanta, GA · Member since 2017 · 136 posts · 54 votes
9y
Jaysen Medhurst thanks for the feedback. In the current condition, the property may be worth $50-$75K. Asking is almost twice that with one unit rented, if you can call it that. My thinking is either the owner is in bad shape, doesn't need to manage the property, or just had had enough. If I'm willing to put my own money and time in, it could work...
Investor · Atlanta, GA · Member since 2017 · 136 posts · 54 votes
9y
Jim Wilcox All good points. Don't think this property meets my criteria at any price. Not worth the risk of finding out what's really wrong after I own it. I would like to help turn it around just to get started with 4 plexes though.