@Adam Philpot I think everyone on here would need more data to know how best to respond. You said it is class C. How tough is the area? What kind of employment do the tenants have? I have a 20 unit in a class C- area, and I would say we need to budget somewhere between 10-15% of the rents for maintenance on an ongoing basis. Some of this is due to the management company we have in place as well.
Adam, We have been doing class C in Memphis for years now. We carry no debt on our units and figure at the end of the day 1/2 of rent revenue will be spent on expenses. I'm vary cautious of multi family in class C, there is just too many single family available to have a decent tenant base for multi.
Thanks, John. It’s about a mile from an area gentrifying with lots of shops and restaurants. I think if I price the rehab into my offer I can slowly rehab units and improve the caliber of renters. Any thoughts about that approach?