OfflineIm new at this. I was offered this property and some say do not get into appartments. Others say its a good money maker.
35535 sq ft building, 27-1 bedroom and 11-2 bedroom. Rent between $500.00 to $800.00 a month.
The average cost after rehab is about $30k per unit. And the company that bought the property at an auction is arranging the rehab.
The cost to operate the property can be minimal. 3-5 staff needed only and utilities, insurance, etc..
Im not sure if this is a good deal, Im guessing that the vecancy rate it about 10% for these small appartments.
Im asking vor all you DGers for your professional advice? Is this a good deal?
Appretiate ant reply. Thanks Brian.
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I would ask for the cap rate and total occupancy become moving forward. After you have this info post it back on DG.com and we can help you more on this deal.
We are in for one of the hottest rental markets to come in along time, we will help you , Jim
jbischoff
where is this located?
You are what you think about most of the time.
This depends on your goals and the numbers involved. Please post more details:
- Are you looking to buy and hold it?
- If so, do you have the funds and reserves to purchase it? If not, are you getting a loan and have you been approved?
- Do you have experience working with apartment buildings? Are you buying this fully rehabbed or in the process of being rehabbed?
- As others stated, where's it located (don't have to give the exact address). Up and coming or declining area?
Yes, apartment building can be great money makers! Those are a few questions and areas to research to start.
- Tom
the apartment building can be a great investment, if the numbers work; otherwise it can be a money pit. You say you're new at this, so I would advise you to partner with another investor with more experience and if it works you can split the profits.
Join a rei club in your area where you can meet other investors.
Also, you may want to fill out some info on your profile so that other members on this site can know a little about you and network with you.
Wishing you success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
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Thanks for the advice all of you.
As soon as i was asking for more information they said it became a bidding war and several companies are bidding for it.
I refuse to get inti bidding wars. So I turned it down. I also made a deal with them to buy property woth out them rehabing it.
I also found that the liasting was misleading. it was only 10% rented and all appartments were being rehabbed by them, and they were adding 5K per appartment to the cost of the buyer.
I set my max price and will never go above it.
Again thanks to all your help.
Brian