Under Contract, need feedback

[JJ Lopez]

After several offers on various properties I'm finally under contract on a deal (yay). 

Just did inspection and am awaiting on appraisal but I have some concerns which I don't know whether to file under newbie jitters or red flag.

Property is a 4plex (1 bedrooms) in Pueblo CO was previously bought early 2018 for $140k nicely renovated (not full gut) and now for sale for $355K with apartment rents at about $3800 plus potential to rent out 2 car garage for about another $200. 

Concern is that I'm overpaying for a property and the leap from 140k to 360k should trump the potential cash flow numbers. I'm still pending appraisal but should that come in at the asking price, should I then feel more at ease with the purchase?    

My realtor has been pretty positive about the purchase but I am looking to see other perspective. 

Basically trying to understand if you were in my should what other info you would want to see,know to move forward. 

Appreciate the  thoughts on this. 

[Matt Leber]

@JJ Lopez if your goal is to buy primarily for cash flow, and the numbers work for you then I wouldn’t not have jitters about the sale price. Hopefully the property has passed all inspections and the renovations that were done are quality work and done right. In my opinion, that work that the flipper has done will make this a quality property for you with less maintenance headaches. As long as the cash flow numbers work for you.

However, if you feel the renovations are mostly of the “lipstick on a pig” variety, maybe there is more cause for concern. Hopefully this sale price falls in line with other comps in your area.

If your goal is cash flow, you will be sheltered in the event of a market downturn as long as you are collecting your rents. Doesn’t matter if the property loses value because of a market slow down. All that equity is icing on the cake in my opinion. It will come back up. Don’t psyche yourself out about it, as long as the cash flow numbers work for you and it comps in price to similar properties. Good luck!