Need advice on first BIG purchase?!

[Lindsay Conway]

So my husband and I have the opportunity to buy our first BIG RE purchase. Want to see what you guys think.

-9 unit apartment building w/large storage shed and office

-Appraised on county website for $145,000 back in 2003

-Could easily rent each apartment for $500/month, bringing cash flow to $4500/month

-Purchase price would be $175,000

We would leverage 2 of our other rentals as collateral for the down payment and get a commercial mortgage on it. The apartment building is in a super desirable area in our town and it's rare that they go up for sale.

What does everyone think?

[Charles A.]

Well,
We need more info.
What is the P&L like?Have you inspected the rent roll?
What's the NOI?
What are the cap rates for the area?

When you buy multis,it's irrelevant what the county appraised it for in 2003.

The only thing that matters are the metrics I've asked you above,in addition to stuff like occupancy,and neighborhood grade.

Those are likely to determine whether you have a cash cow or a bunch of piglets.

Just my 2c