Coming back from the beach today and I see a sign in front of the apartment complex that is down the road from our house that is (not going to lie here) in shambles with a for sale sign out front. There about 50-60 units in the development and they are asking $350,000. I can see on the tax records that they only paid $500,000 in 2008, so this is a little surprising but not obsurd.
The few times I've driven thru there it seems like it could be a decent place but there are some burned out units, the cops go in there at least weekly, I have heard and heard of drive by shootings, and would guess the occupancy rate is almost irrelevant. Just one unit should rent for $500 which means 4-6 units would pay the mortgage depending on the term, interest rate, amortized or not, and down payment.
It is also surprising that it is near a college town, near a major interstate, lots of industries in the area, however it is
the bad part of (our small) town.
I am curious about others out there who have managed a similar property. How long has it taken to change the perception and get all new tenants? I know evictions can be time consuming but it looks like the place just needs to be cleaned out before anyone would be willing to move in. Are traditional commercial property loans available for a development like this or could I seek a loan shark (is that the proper term?)?
Managing this myself is not intimidating. When I grew up my family managed about 40 rough units. Now they have around 200. I have
http://forum.mrmoneymustache.com/real-estate-and-landlording/what-to-do-about-a-late-payment/ a unit but it is a different clientele. I would be willing to manage it for a reasonable fee for some interested investors or potentially take out a loan for some fair terms. If nothing else it would be nice to just clean up the neighborhood.
Stories, advice, and terms wanted.