Why would I not want to buy this?

[Larry DII]

Hello, I'm new here and new to REI in general. I've been starting out by looking at MLS properties near me to get a feel for things in my area. I've found a few properties which seem good to me on paper, but I would like to post one here and have some pros to chime in and let me know what they think.

http://www.trulia.com/property/3212374474-811-Covi...

This is a four building 32 unit property going for 1.2MM that I'm roughly guessing would bring in avg of $500/door.  It looks pretty turn-key.  Assuming there's no back taxes or major renovations needed, does this make sense on paper?

I'd like to finance something like this as a buy and hold and have the cash flow cover the payments and then some. I can put 20-30% down as needed, but I've heard that getting loans for properties within the city limits of Detroit can be difficult.  Does that apply even for turn-key commercial properties such as this one?  Am I better off looking in the 'burbs?

So please rip apart my train of thought here and let me know any huge pitfalls you might see in my path or anything else that I'm not considering.  Thanks!

[Zach Kidd]

Detroit? 

No. 

Just no.

All joking aside, take a look at the big picture. 

32 units is good.  Leveraging your money is excellent.

What can you reasonably do to increase the cash flow?

What can you reasonably do to protect the property long-term?

Who are your prospective tenants? What's the job market? Draw for that area?

What's the likelihood of you getting paid, vs. the potential hassle?

Now, it's local to you, and that's a pretty good thing.

What other deal can you find at or near that price point that has a better return, stability, future potential, etc? 

Would you be better off finding a 10 unit property in Atlanta near transit to a University?

Or a similar vacation rental in Florida? ("Property inspection business trip" = vacation!)

Find alternatives and weigh them. 

If they make your deal look sweeter, great! Pull the trigger.

But if your deal looks a little more sour, put your money elsewhere.