Updated about 8 years ago on . Most recent reply
Multi-family for a newbie
Hey guys just looking for some feedback/opinion. My wife and I looked at a multi family this weekend and are on the fence about purchasing it. It's $110k, 3 units, collecting $1650/mo. Puts it at about 1.5%. It's a really solid/stable area, in a good location, that's just off the Main Street of town. Biggest issue is that for our standards, the place is a mess. Looks like a lot of work to be done to upgrade the units and get higher quality tenets in them. We would be able to raise rents to total about $2000/mo after renovations tho, we suspect. I would ballpark the repairs/upgrades to be about $6k/unit, with roughly $5k more going into exterior repairs/upgrades. I've done a lot of remodeling myself over the years (lucky to have a dad that's a great builder!) so the repairs aren't a big deal to me, but I'd like input as to whether the numbers make sense. Thanks for the feedback!