Updated almost 7 years ago on . Most recent reply
Pitfalls of first purchase I should watch for (4plex)
Hello I am looking at a 4 unit property (each 2 bed 1 bath) and I was wondering if anyone would mind pointing out some of the pitfalls a new investor like me may miss?
The property is listed just over 100k and when I use the rental property calculator I come up with $650 cash flow conservatively. (10% vacancy, 10% maintenance, 10% capex, and 12% property management (which I'm considering doing myself anyway). I'm looking at over 20% cash on cash return. The roof is 5 years old, the units have been fully updated within last 5-10 years and of course I would have inspection done prior to closing.
So it seems like the numbers work out well, and I'm not seeing a reason not to pull the trigger. However, I don't want to jump into a purchase and then get crushed by something an experienced investor could have easily pointed out. Thanks for the info and let me know if you need anymore information to assist.