Episode #18 🎙️- Deal of the week - Lakewood | Summary and Q&A

TL;DR

This property deal in Lakewood, Ohio involves a 19-unit building that requires significant renovations and lacks parking amenities.

Key Insights

• ❓ The property requires significant renovations and maintenance due to deferred upkeep.
• 👾 The lack of parking spaces is a major drawback and may limit the potential rental income.
• 😘 The current rental prices are low for the area, indicating a potential need for improvements and higher-quality tenants.

Transcript

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Questions & Answers

Q: What are the major issues with the property?

The property has deferred maintenance issues, including outdated plumbing and electrical systems. Additionally, the lack of parking spaces is a major disadvantage, especially for tenants who own cars.

Q: What are the current rental prices for the units?

The current rental prices are $481 for one-bedroom units and $620 for two-bedroom units. However, these prices are considered low for the area and may attract lower-quality tenants.

Q: How much would it cost to renovate the property?

It is estimated that renovating each unit would cost around $20,000. However, considering the lack of parking and potential limitations on rental income, a lower renovation budget may be more realistic.

Q: What is the suggested purchase price for the property?

Based on the market conditions and potential risks, a conservative purchase price for the property would be around $350,000.

Summary & Key Takeaways

• The property is a 19-unit building in Lakewood, Ohio, built in 1927.

• It requires extensive renovations, including plumbing and electrical repairs, due to deferred maintenance.

• The lack of parking spaces is a major disadvantage, as it limits the potential rental market.