What To Offer On Multiunits When No Docs Available?
Saw 2 abandoned multiunits - a 19 unit and a 14 unit that have been empty and were sacked/vandalized. They are 1bd/1ba units. Since they are empty and in need of lots of work I have no figures to base my offer on.
Each unit can go for between $300-$500 after repairs.
The 19 unit (1bd/1ba) was purchased for $230K. They made some repairs and then boarded it up. It was sacked and now the doors and windows and all the items inside have been stolen along with the copper wiring and plumbing. They tried to sell it on loopnet a few years ago but no takers. It needs a new roof as well. I estimate that it needs around $130K of work. I was thinking of offering $43K
The 14 unit (1bd/1ba) was foreclosed on a few years ago. It has a municipal lien that is running at $50 a day. I would estimate that it needs $90k of work. The foreclosed amount was $146K. I am thinking to offer $30K.
Do the offers sound too low? How do you decide on what to offer when looking on basically abandoned units that need lots of work?
How do you decide on 2bd/1ba versus 1bd/1ba?
[ Edited by gflarel on Date 09/13/2008 ]
run your numbers with your estimated rent rates. figure your CAP; NOI after completion. You will need to do that yourself, if u cant, u probably should walk away.
I hope u do know that you will need to finance repairs out of your personal account (u will not get a repair loan/mortgage). If you didnt know that; you should probably stop right now and move to something smaller.
offer the value of the land less demolition costs
start new raise the value of the whole area
Quote:
On 2008-09-13 22:23, gflarel wrote:
Saw 2 abandoned multiunits - a 19 unit and a 14 unit that have been empty and were sacked/vandalized. They are 1bd/1ba units. Since they are empty and in need of lots of work I have no figures to base my offer on.
Each unit can go for between $300-$500 after repairs.
The 19 unit (1bd/1ba) was purchased for $230K. They made some repairs and then boarded it up. It was sacked and now the doors and windows and all the items inside have been stolen along with the copper wiring and plumbing. They tried to sell it on loopnet a few years ago but no takers. It needs a new roof as well. I estimate that it needs around $130K of work. I was thinking of offering $43K
The 14 unit (1bd/1ba) was foreclosed on a few years ago. It has a municipal lien that is running at $50 a day. I would estimate that it needs $90k of work. The foreclosed amount was $146K. I am thinking to offer $30K.
Do the offers sound too low? How do you decide on what to offer when looking on basically abandoned units that need lots of work?
How do you decide on 2bd/1ba versus 1bd/1ba?
<font size=-1>[ Edited by gflarel on Date 09/13/2008 ]</font>