Need a reality check on an apartment building investment

Igor Chudov · 2011-04-21T01:55:40+00:00

I was looking for a real estate investment. A realtor that we used inthe past, located a deal with six apartments, sharing a stairway, in along apartment building.The pro forma statement shows income of $39k per year after taxes andwater (renters are paying electric bills). All six apartments seem tobe occupied, with none seriously behind on rent. The price on this is $300k. It is located in a low crime area, a large apartment complex type ofplace.I want to get some reality check on this. For example, what does it mean exactly, to own six apartments in along building. What do I exactly own? What if the building needs to bedemolished?i

Apr 21, 2011 24 Replies

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Igor Chudov 15 years ago

A little update for Tad and the rest of the crew.

I do not think that I will be buying those apartments.

This weekend, I won a real estate auction for a house in the center of our small town, on a 1/2 acre of land.

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The hammer price was $70k. The auctioneer's fee is 3k.

I now think that auctions are a better way of buying into a real estate investment, based on the prices that I am observing at auctions.

Yes, there is slightly more risk and slightly more work, but more potential to make money.

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ps56k 15 years ago

interesting little place - just drove past it on the way to the bird feeder place on the corner.

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Igor Chudov 15 years ago

Whatcha think?

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ps56k 15 years ago

BTW - went to get some seed for the finches, and saw that you have now placed it up for sale with a realtor.... Interesting... bought for $70k - listing for $124k -

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