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 :-?

Comments(6)

  • edmeyer15th January, 2005

    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.

  • fdi16th January, 2005

    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!

  • Jamespf17th January, 2005

    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
    rolleyes

  • Jamespf1st February, 2005

    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

  • Jamespf2nd February, 2005

    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

  • tdanna2nd February, 2005

    Jim,

    Seems like my email address was taken out of the post. I sent you a private message with my contact info.

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