- Good agent relationships
- Showing up
I helped the buyers purchase this property in 2013. As of January 2015, 60% of the buyers loan is being covered by the rent generated in the lower level apartment. In this short time, the buyer has been accumulating cash and is preparing to make another investment.
A few things worked particularly well here. First, and most critically, the buyers had done their homework and understood the potential.
When we found ourselves in multiple offers, it was helpful that I had a good working relationship with the listing agent. Because of this, the seller agreed to meet for an in-person offer presentation (I don't believe competing agents/buyers presented in person). And, at that presentation, the listing agents encouraged their client to take my client's offer.
View listing details here.
I am always intrigued by the $/unit number in these apartment building sales. I would think that this would be a relevant number for renters considering buying. This is the price that an investor is willing to pay to rent this space to you (presumably a premium for the right to use it to generate future revenue and a discount for volume). Would you pay that much to own it (or something similar) and control it yourself? Any other thoughts on this data point?
Pretty in-depth and dynamic Rent v. Buy analysis from Trulia, including adjustments for interest rate/hold period/tax deduction