Help–Need advice on Property Mgmt/Rehab!! - Posted by Fred in Dayton
Posted by Fred in Dayton on October 19, 1998 at 20:39:27:
I’m trying to set up my first deal. Here are the specs:
5 family in small town
gross rent: 1925.00
owner wants 60,000 cash (but told me on the phone prior that he would take 55,000 to 60,000). He owns a construction company, pizza place, storage units and about half the town…he’s 62 years old and said he “needs to slow down a bit”! He’s not interested in taking any amount back–just wants to cash out.
All the units are currently rented (one to the same lady for 15 years.) The outside needs siding (probably vinyl?). Has new windows and a new roof. 2 of the units pay for their utilities and the rest are on their own–I have to call his wife tomorrow to get the utility costs. The furnace is ten years old. I haven’t seen the inside, but I assume its at least rentable.
Here’s my dilemma: I’m active duty military and I would prefer not being a landlord–an impossibility actually. I’d rather finance right for $10k profit at time of purchase and then rehab and sell in 6 months. However…on the surface, this sounds to me like I could pay all the bills, make a nice monthly income stream, and still pay someone to manage the property for me. The income stream (even if only 2 of the units were rented) would cover my “holding” costs.
I’m looking for input from anyone on this–property managers, rehab gurus and finance wizards!
Thanks in advance!