Posted by Thomas on March 27, 2001 at 09:53:28:
First you reall need to figure out why he is selling…
You just cant PAY market as he is claiming as his price on a property with small rents…
Why would you want to spend 1500 a unit for a comfort thing ? If you do that your first year is all about RE COUP of expenses…
Are you going to raise the rent $200 each unit for the improvement? Will the lease allow you that ability or will you WAIT till each lease is up… That may mean all new tenants…
Thats over a year before you make anything out of it if you get the central heat and air and if that is the case, Why do you want you money tied up a year If you are not going in with equity through a low offer?
Expenses at 10k? Get his financials… See what he has really done to keep the property up…
As a new investor, I think you need to look elsewhere… This deal is TOO thin and the owner is NOT motivated for the amount of equity he has in it.
Also, you need to LEARN about managing your own property so later when you have a lot you will know what to expect from a good company…
Seller Not motivated = No profit for you from the start = no no
You have BIG interest in your own property so you will do a better job at maintaining it…
Last comment.
You are the prophet of your own life… WHAT YOU SPEAK is what will COME TO PASS…
So never, never , and did i say never? Never speak negative. Always speak as though your desire HAS already come to pass…