How would you approach this deal?

[Jason Ohs]

I have recently come across a 4-plex that I am interested in.  They are asking $550,000 and it's in a good part of town.  The units are in decent shape but could use some sprucing up. The owner just put a new roof on the property and the exterior is all maintenance free brick and stucco. My only problem is the current rent he is charging the tenants is $450 under market value as is DD.  After running the numbers I would be cash flowing-$1000 a month. Two of the tenants have been there over a decade and all are off lease. I would need to give 3 months notice for a rent increase and I'm not sure if the current tenants would be able to afford it.  So that would leave me 3 months in the Red and possibly a 4th month filling vacancies.  What type of deal would you need to make this worth your while? And why? Thanks everyone. 😊