Pitfalls of first purchase I should watch for (4plex)

[Robert Dabicci]

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. 

[Tom Kaz]

@Robert Dabicci sounds like a good investment, what city is the 4plex in?

I recently just bought my first 4plex, I went over on everything like you did and ended up cash-flowing more then expected.

Seems like your due diligence is dialed in, ask the seller for utility bills to get a feel for the expenses. Luckily for me the tenants pay everything besides water.

Good luck!