14 Unit Property
Hi,
I'm a new private investor looking to acquire a 14 unit building in a not so desirable area. All units are rented by section 8. I did the math and the numbers make scense. I was wondering what are the thing I should lookout for before jumping in. The property is in Paterson, N.J. All help and comments would be appreciated.
Respectfully,
James :-?
Are you going to manage this yourself? If so, you will likely be busy with maintenance issues, tenant issues, etc. I hope it doesn't overwhelm you. If you get a property management company, you will need to be careful also. They can really try to extract your profit if you are not careful.
Overall I think Section 8 is a good program and have many Section 8 tenants. One difficulty in my area is that they have had cutbacks recently and have reduced the level of support and the maximum rents they allow.
Agree with other poster. Managing & maintaining a 14 unit property can be a full time job, especially section 8, with all of the inspections. Prior to jumping in, I would review the leases on all the units to find out how much section 8 is paying & how much the tenant is paying. On a buidling this size, I would talk with an expert on insurance & liability costs.
Wish you the best!
Hi,
Thank you for the responds. The rent rollis as follows:
Sec8 Tenants pays
1350 29
970 147
964 120
1129 0
1506 87
0 1050
1298 52
863 254
1448 164
1247 257
1077 40
0 750 super
849 51
1129 0
Also, yes I'm getting a mng comp to deal with the building. The person selling it to us offered to mng. it. He is selling all his bldngs. in NJ and keeping the ones in NY and going to mng. building in NJ. What do think about this? Again, all your help would be greatly appresiated.
Respectfully,
James
The house is on Carrol st. The asking price is 1.4 It has one boiler and one water heater. The gas and the electricity is tennants responsibility. The owner may hold a 10% of the down payment. What do you think?
James
The address in 92 Carroll st. There are 15 gas meters and 15 electric meters. The tennants are responsible for that. The landlord is responsible for hot water and heat. I do have the breakdown of the building. How can I get intouch with you about the 5% or 10% for commercial prop.?
James
Jim,
Seems like my email address was taken out of the post. I sent you a private message with my contact info.