To jump or not to jump.

[Eric Carbrey]

There is a fourplex for sale in my city that started at $149k I have talked him down to $140.

I am very interested in the unit. Here are some hang up I have. Right now the tenets are in a program that get homeless people off the street. Guaranteed rent to be paid by the city, and they have a case worker that visits the units once a week to check on things. Would you do this?

Rent is $474/m

expenses $418/m per previous owner.

Whats is your opinion BiggerPockets? 

[Westin Hudnall]

@Cole U. 

What up my brother !!

Long time no talk ---- Had NO clue you were on bigger pockets :)

Miss you down here at Enterprise in Wichita ; hope things are going well for you in Indy.

@Eric Carbrey 

I would never purchase anything the renter isn't paying for 100%. I know your viewing the guaranteed payment as a positive but for me that's a huge negative.  This leaves you open to so much exposure ---- many will trash your place and not care ; they won't take pride in ownership of something being handed to them.

Also for $140k ; your loan is going to be around $1000/month. After expenses you won't profit and you might even negative profit. Instead you will spend all your time repairing damage that will cause you to have a high rate of vacancy raising your costs. 

My advice if you have $140k to spend would be to play it safe ; find a nice single family home in a nice neighborhood that you can rent for $1400/month that will bring a high end low maintenance tenant where costs are very low.

Save up ; wash ; rinse ; and repeat.