Dallas-Fort Worth Real Estate Investor Club

4-Plex Needing Rehab

  • 23 Mar 2015 7:00 PM
    Message # 3263382

      I have a deal brought to me by another wholesaler.  Initially, I wanted to purchase it myself to hold as a rental.  So far I have not been able to get funding for it, mainly due to its age.  Therefore, I am not opposed to birddogging this property to someone else.  Here's what's going on with it.  Please share your thoughts on what can be done.

       The house was built in 1924.  Over the years it has became a 4-plex.  Just over 2,000 square feet, roughly 500 per unit.  It has two efficiencies downstairs, and two 1 bedroom units upstairs.  It is being sold because the current owner is in their 90's and wants to sell off all their investment properties.  It is in a 99.9% Spanish speaking neighborhood in south Fort Worth.  All other houses are two or three bedroom single family homes, so we're unable to pull comps.  It's construction style stands out visually from everything else as well.  There is no recent rental history due to long time vacancy.  I am confident in saying $1,600 per month in total rents, some people have told me it can pull more though.

       The lowest they will go on the price is 55k. Rehab costs will be ~35k.

       There are two schools of thought I have found.  1) It is too risky to have 90k tied up in a property in that neighborhood.  Even though the cash flow is great, in event of market downturn, it cannot be sold for much, if any, profit.  2) Cash flow is good enough that it's worth that much money being in it, and in the event of market downturn, it can be sold without a loss.

    Thoughts, questions, or is anyone interested in buying it?

  • 24 Mar 2015 7:49 AM
    Reply # 3263941 on 3263382
    Deleted user

    Dwayne,


    I own two fourplexes and love them. Could you please email the info for the house. I am VERY interested buyer.

    ben@cowlingproperties.com

    Ben 

    682-300-0672


    Thank you! 

  • 24 Mar 2015 10:13 AM
    Reply # 3264130 on 3263382

    please send me any details you might have

    anand

    akdahya@gmail.com 8172194726

  • 24 Mar 2015 10:13 AM
    Reply # 3264131 on 3263382
    @ Benjamin - Sure. What info would you like?



    Last modified: 24 Mar 2015 10:15 AM | Dwayne Modisette
  • 24 Mar 2015 10:17 AM
    Reply # 3264149 on 3263382

    @Anand - The info on the property is pretty much given in my post. Is there something specific you're wanting to know? What details are you asking for?

  • 24 Mar 2015 4:50 PM
    Reply # 3265378 on 3263382

    Dwayne,

    I'm interested, but concerned as I have been burned in the past with a very similar deal that fell through because the zoning was wrong and no certificate of occupancy had ever been filed to convert the house to multi-family from single family. If the owner can provide this document, I am definitely interested. I can be reached by e-mail: (my last name).holdings@gmail.com

  • 24 Mar 2015 11:48 PM
    Reply # 3265722 on 3263382

    @Willie - The current owners have had it since 1986, and it looks like it was made into a 4-plex well before then. So I do not know if they would have copies of any papers filed since it was so long ago. However, the property is listed on TAD as "State Code: B Multifamily Residential." Would that indicate it was done properly?

    Last modified: 24 Mar 2015 11:54 PM | Dwayne Modisette
  • 24 Mar 2015 11:56 PM
    Reply # 3265726 on 3263382

    Also... Anyone, please feel free to call me to discuss at 817-925-2392.

  • 25 Mar 2015 9:54 AM
    Reply # 3266133 on 3263382

    You might want to call the number on this page:

    http://fortworthtexas.gov/codecompliance/

    You can search for the code compliance officer by street address, and there's some other useful looking stuff here.

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