Let me know what you think!

2 Replies

Hello Biggerpockets, I recently found a property that I love but I'm a newbie so let me know what you think. Ask price: 1.6m 30 units- 3 buildings 1 6plex 1 11plex 1 13plex all immediately next to each other current rent is an average of $550 per month but could easily be raised at least $100 with no extra work with work could raise to $950 this is in Missouri i believe there is a lot upgrades that could be done 2 of the roofs are wood shingles popcorn ceilings everywhere no covered parking just a parking lot carpet could be replaced and railing for stairs is the black metal spindles from the 70s seller does not want to finance selling this to upgrade to a bigger apartment complex and I don't have any cash so I need to do hard money

@Mark Tallent

Take this advice for what it is worth. If you are new to real estate investing, that many units may be too much to handle. A LOT of work and systems need to be in place to handle that many units at one time. Not to mention the cost of that property being quite high. I understand that the rent is a little low, but you are going to be in over your head if you don't have a STRONG foundation. 

Look at other deals, I suggest smaller multi family units to get started. try and house hack a tri or a quad. 

Dont hesitate to reach out if you have any questions!!

@Mark Tallent - I don't have numbers to run, but the description sounds like a strong investment opportunity. Assuming it is already marginally cash-flowing, it has room to grow and improve. The best investments are ones where you have a plan to improve, and a way to leverage the property.

That said, there's a lot of improvement and work that you listed in order to make this a solid investment. You'll need to handle hard money lending, rent increases / tenant replacement, construction management or sourcing, and general property management. If you don't have a lot of experience in each of these areas, you'll be attempting to learn a lot all at the same time.

If you an find a more experienced investor in your local groups that wants to take this project themselves and mentor you through it, that might be a great option.

My concern is that this would be too much too fast, and that you aren't setting yourself up for success if you go into this large of a project as your first.

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