10 Unit Apartment in Central Illinois - Heavy Reno Needed
Over the years a 10 unit in central Illinois comes on and off market (I'm posting a link from the last listing). Here are the details:
- 9 Units in Apartment (5 2bed, 4 1 bed)
- 1- 2 bed house on property - it is a strange house. The front door faces the back door of another house very close to the lot line.
- Average rent $400 per unit
- Currently only 3 units rented (landlord had been clearing people out thinking the new landlord would want to get own tenants).
- Single owner who has pulled most of his equity out in loans.
- Was always asking $145k. He'd accepted an offer of $120k before the other buyer pulled out.
- Link to Zillow Listing
I know he's had quotes of $30k-$50k to put a new roof on and repair some structural damage due to neglect. I also know there are termites and cockroaches in the place. I own a property next door and do regular termite/roach extermination because of the flow from this building. It's a slumlord type situation - but a lovable slumlord that gets along with the tenants. He knows the apartments are survivable at best and they know he's the only person that will rent to them.
Each unit will need to be renovated - some structural but all are to modernize.
Local landlord tells me no matter what a person does this place will always be a $450 per month per unit rental. It is a great rental town and there's confidence it will stay occupied. Finding contractors in the town takes a lot of work. There are good property managers in town.
I would want to bring it at least from the Class (D) that it is to a Class (C). Rents would average $450 per month and I would want it managed by someone else.
Wondering where you'd be on numbers.
Also wondering what kind of timeline you think my money would be tied up before I was at least breaking even while the rest of the units were rented out.