Need Some Good Ideas From
Hello,
I was presented with a problem recently and am stuck in finding a solution.
A friend of mine was given control an appartmet complex by his father last year and he does not know what to do with it. He has no experience in real estate and does not necessarily want to be a landlord.
The complex is in a low income area with no turn around in site. After he paid a management company to come in and asses the property it turns out it needs about 300k in renovations to make make it livable. Further the basis on the house is 3.2 million and the debt left to repay is 3.8m.
So my question is what should he do? After some research I can up with the following ideas: cleaning it up and fill it with sec 8 tenants, stabilize the rent role and sell off the property. Based on the 2011 HUD FMR schedule he could get an above market rent paid directly by the government. Or, possibly selling the property and doing a 1031 to defer the taxes or doing a short sale.
As you can tell I am fairly new to RE myself so I am looking for some quality ideas from experienced pros.
I may have left out some vital info because of my ignorance on the subject. I can provide more as needed.
Any help would be appreciated. Thank you.