1st buy, and not so sure if I should just go for it

[Ida Saidkariev]

Soooo...I found this fixer upper property on MLS , it has been there for 3days so far. Its listed as duplex, but it has four units rented out . Looks like needs exterior paint maybe more, no due diligence allowed till offer excepted. Numbers: selling for 80K cash only, houses around in ok condition are about 100k. Each unit rented out for $ 600 /each x 4= 2400/m. My financial situation: I have big cc loans 0% apr till 11/17. To buy this property I would get hard loan and then re-finance . I have read a lot, listened to podcasts, books, webinars..i think i am ready, everybody says to just go for it. Should I just go for it or am I getting myself over my head? How long does the whole process usually take? Or maybe I should just buy and not rehab while tenants are there and then slow rehab as they move out and new ones come? Would really appreciate your 2cents!

[Joe Scaparra]

Jeff and Rodney make excellent points.  I can tell by your questions that you are very new to investment RE.  No problem, we have to start somewhere.  However, you are looking at a property that should only be considered by a very savvy, experienced investor.  If you look at the investment from an altitude of 50,000 ft it looks crazy good.  Buy at 80k and annual rents are $28,800.  That is a 38% cap rate.  Something is not right!  So now we get a closer look at the property from 1000 ft above (sorry I'm a pilot).  1st thing we discover is that it is mis-classified as a duplex when it really is a 4 plex.  Why and how did that happen?  What could the legal consequences arise because of this?  By your own admission you are in serious "bad" debt situation.  If a miscalculation in buying this property occurs it could put you in a worse condition than you are now.  Once you buy the property, you have to manage it.  If your property is not up to code and is not legally a 4 plex the tenants can use that to their advantage and have leverage over you and any policies you want to enforce.  I am not saying you should just walk a way from this property. Hell, you might have come a cross a deal of a lifetime, I doubt it, but anything is possible.  I would proceed with EXTREME caution.  Until you understand throughly why it is listed as a duplex with the county but really is a 4plex, I would not buy it.  If you proceed to buy it, make sure you have a comprehensive inspection.  One last thing, I just notice reading your post.  They are only accepting cash offers. I suspect why is because it could be next to impossible to find a lending institution to fund this deal.  That also means less oversight for the seller.