Should I overpay for my first property?

[Jim Sullivan]

Hi all,

As a new investor, Is there ever a situation where you might overpay for your first property just to get started? 

$375K for a 3-flat currently getting $2800/month in rent. My lender has already told me I can put down 10% for a non-FHA loan (w/ PMI of course).

Pros: Off-market in a great location in a solid middle class neighborhood and essentially zero vacancy. Tennant quality is about as good as you can get and is fully rented.

Cons: Needs a bit of updating/rehab. For instance, the roof needs to be replaced very soon and all the units need something (e.g. paint, carpet, flooring, door replacements, etc.)

I am quite anxious to get started even it means losing in the short-term, but perhaps that is the wrong approach.

Any thoughts? 

Thanks in advance

[Account Closed]

NO! NO! No! On second thought.  HELL NO!!!!