pulling the trigger

[Drae C.]

Once I buy a multifamily property what are the odds that I will fall behind on mortgage payments because I can't find renters? Using mortgage calculators the rent they recommend me ask seems a little too steep for the area I want to focus my investing. I am born and raised in Austin TX and this is where I want to invest But multi family properties here are so high I'm beginning to second gues if I will be successful or fall into a severe amount of debt.

[Jerry W.]

Hey @Drae C. welcome to BP.  Your question cannot be answered with no numbers to go with it.  If you buy a $100K fourplex and rent it at $1K per unit you will do fine, if you buy a $500K fourplex and rent the units at $500 a piece you are in trouble.  You must know rent prices for the neighborhood and class of property you are looking at buying.  You need to know demand, one of the best ways is rental and payment history.  Look at books or tax returns.  Having the place full with rent at $1K per month means nothing if they are all 4 months behind on rent.  Figure out all the costs including financing and run the numbers.  Know demand for that area.