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  #21  
Old 04-02-2020, 10:34 AM
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It contains potassium benzoate.
Can I go now?
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Old 04-02-2020, 10:37 AM
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Old 04-02-2020, 11:28 AM
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So the owner added the Basement unit the year following her purchase of the building in 2015.

Since the building is so old, it could be that all or most of the repairs that needed to happen to bring everything up to code has already happen, no?
It could. It could not. Get it inspected first, and then also get the company that would do repairs to inspect it and agree to everything and get a quote. Perhaps a binding price is possible, though not likely.

It could be fine, it could need hundreds of thousands worth of work.

I'm assuming you won't be doing any work yourself, because it doesn't sound like you know what you are doing.
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Old 04-02-2020, 11:50 AM
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It could. It could not. Get it inspected first, and then also get the company that would do repairs to inspect it and agree to everything and get a quote. Perhaps a binding price is possible, though not likely.

It could be fine, it could need hundreds of thousands worth of work.

I'm assuming you won't be doing any work yourself, because it doesn't sound like you know what you are doing.

If it really needs hundreds of thousands worth of work, would it be able to fetch $2000 rent per month per unit? That is well above the average rent for the neighborhood. 3 bed 2 baths is the profile of the units.
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Old 04-02-2020, 11:55 AM
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If it really needs hundreds of thousands worth of work, would it be able to fetch $2000 rent per month per unit? That is well above the average rent for the neighborhood. 3 bed 2 baths is the profile of the units.
Why would renters care? If it breaks they can move out.
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Old 04-02-2020, 01:34 PM
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If it really needs hundreds of thousands worth of work, would it be able to fetch $2000 rent per month per unit? That is well above the average rent for the neighborhood. 3 bed 2 baths is the profile of the units.
Run some sensitivity tests. What's the average for the area for comparable units? If the current tenants move out, you might be forced to take the average rent rather than getting the premium you're getting now. Also, consider the various risks involved. What if your tenants lose their jobs leaving you with zero rental income? Eviction is a drawn-out messy process in normal times, and many states have prohibited evictions until the public health crisis is over. It's not an unrealistic scenario, especially in the short term. In the worst case scenario where you'll be going months at a time with zero rental income, can you cover the holding costs and still have enough left over for potential maintenance costs? How do you think the neighborhood will fare in an extended shut down? Will people be looking to leave for wide open spaces after this is all over?

Long story short, consider the $72K/year rental income as a best case scenario and work backwards from there.
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