Posted by Bill K. (AZ) on March 28, 1999 at 16:11:54:
Two statements for you…“Due diligence” and “Do your homework”!
- What are your plans for this property?
It sounds like you are planning to “buy and hold” since you emphasize the monthly cash flow. If that’s the case…
- Will the area continue to be attractive to tenants?
Can the rents be increased yearly to provide more cash flow, or are the rents declining as well?
What are the city’s plans for this neighborhood?
If this area is at its bottom, and the city has improvement plans, you might do all right in the long term. However, you suggest that the area is still on the decline. Hence…
- Will you hold the property long enough to see a turnaround?
Your answers to questions like these will give you a better idea of your opportunity.
I hope this helps.
Bill K. (AZ)