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I have a guy who has a quadraplex, four 1 bedroom 1 bath. He was asking 94,000 for it but I got him down to 75,000. He does not want to do any repairs. I looked at the place, and it does need some work such as HVAC stuff, floors, paint and roof, at least. I’m not sure what all this would cost. I think the apartments would rent for $400 each at least, but some need work before being rent ready. Two are rented currently. The guy is relatively motivated, but says if he can’t sell soon he might have to put some money into the place and it might sell for more at that time.
He was open to a lease/option as well as an outright purchase.
I’d like to try to fix and hold as I believe I can get some decent cash flow out of the place if I can rent it out. I do have some cash to invest in it.
Any thoughts?
If you wish to hold, I would get an estimate on the repairs and then go back to him to have him lower his price. If he wants to sell as is without repairs for top dollar then perhaps a HBS would work. One other idea… master lease with option to buy later. On the ML option to buy, subtract the amount needed to fix the place up. You maybe able to get an option for 60k, put some money into it and have them rented out until you cash him out.
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