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?
