Negative Cash Flow Multifamily
When is it ever ok to buy a negative cashflow large multifamily unit of ex. 200-300+ units? What would be the cause of a large multifamily property to cash flow negatively? I know every situation is different but are there any common thing that a new owner can do to turn around a property that is 50 or 51% occupied? Thanks for all input
it could be crappy management
Expensive management... had a case where the opex was 94%. No wonder it was in foreclosure and and sole at a huge discount.[ Edited by cjmazur on Date 11/20/2008 ]
Yes.
In this case they got the note for like 40/100. So w/ that buffer, and a high occupancy, I saw this as a turnaround property.