With the lack of available properties i am considering a real pig (list agent calls it a c minus)...12 1bed 1 bath(560sf)units, two levels, built in 1965 (yaa, cast iron and galvanized) and not touched since then. Just a rectangular box with gravel parking in a slightly rural setting(one acre property) On septic, that needs absolutly everything rehabbed.not horrible tenants or high crime area, just the cheapest thing in town currently. i am thinking about $ 13k per to get this thing right. Only good part is current rents are about half what they could be when rehabbed and if i got it for $300k plus the $150 or so to fix, i might be looking at $100k equity bump, but then again, it will still be just a plain,old, box in an ok location.
I guess what iam asking is.. do you look for massive headaches like this pig in your market? Is this older than you would consider, especially since i would like to keep for a long time?
It has been on the market several months,so it obviously would not be first choice for anyone around here.
I think the uglier, the better!... but we also do full rehabs, so that's in line with our business model. If you are like us, then absolutely, heck I might even try to test the limits and see if they would take $10K/unit! Go at them with facts, about what it's lacking, and comps, and see if they take it! The longer it's been on the market, the more obvious it is to the seller that it's not a desired unit, and they will have to take whatever they can get. Good luck, and take lots of pics!
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