My advice on the property you asked about at the link below is to run not walk away!

My advice on the property you asked about at the link below is to run not walk away!

My advice on the property you asked about at the link below is to run not walk away! Three years ago we had an investor who owned one of these units come to us asking that we manage it for him. Begging actually. His current property manager was inept and he suspected theft. Since he was a friend of another client we made an exception to our rule of not picking up any more multifamily property and tried to help him.

We had to evict three of the four tenants at a cost of $550 each taking from 3 to 8 weeks. We then had to do extensive work to the units and the grounds to get them in rentable condition. When we started trying to re-rent the property the only applicants had poor credit scores and rental history. The owner became desperate because of negative cash flow and asked us to lower our standards. We were able to rent the units but the tenants required constant effort to get them to pay rent. They were very hard on the units and maintenance costs were high.

http://nalmls.com/NALMLSReports/ListitLib/show_report.aspx?ID=7113899147

The final blow was when the owner was visiting from California there was a shooting a few units down. He is a police officer and knew the sound of gunfire. He sold the property at a loss.

The listing realtor is known for providing pro forma data meaning not the actual numbers but what he thinks the units COULD do. note on the listing in the fifth section the text; Property: ALL INFO TBV BY PURCHASER. RENTS ARE AREA MARKET RENTS

Again my advice is to run not walk away from any property in this area. I have seen many lisings in the area sell only to go back on the market a few months later at less than what they were purchased for. The area is dangerous. Huntsville AL homes for sale

Decent multifamily property is very hard to find in Huntsville. It rarely makes it to the Huntsville AL MLS  but is sold by word of mouth in the local investment community.

I ran a search for active multifamily listings at the link below. On location I would only consider 1410 WELLS AVENUE , #10&12, 1506 TOLL GATE ROAD , 1311 PRATT AVENUE , 1020 BEIRNE AVENUE , 204 WEST LAKE CIRCLE and 276 GATE STREET. None of the properties strike me as being particularly well priced.

I do have friends with a few hundred rental units that are looking to downsize. They do focus on modest income multifamily and want to concentrate their properties in one specific area. They mentioned to me the properties they they own. They have A UNIT on Friar Tuck near the Space and Rocket Center and Bridgestreet. The School district is not good and there are lower income multifamily homes in the area but it may be worth a call to them to see which unit they have and what the numbers are.

The link below is to a sampling of sold listings in the area.

http://nalmls.com/NALMLSReports/ListitLib/show_report.aspx?ID=7113899159

You can reach Tim and Mary Snopl at 256 256-527-3067. Let them know I referred you.

I understand that in theory multifamily properties can cash flow much better than single-family but management is more difficult and appreciation and liquidity is much worse. My preference is always single-family property. If you are interested in single family investments please let me know what your price range is and I will see if I can find properties for your to review.

I hope this was helpful and please let me know if there is anything I can do to assist you.