Lower Income neighborhood 4 plex

[Kevin B.]

As a complete newbie, I really need some advice. I am going through the education process using the guide here on this forum and various real estate books. I'm learning as fast as I can read.

I am interested in making multi family properties my niche area. I noticed a fourplex in a lower income neighborhood for sale. Using the 50% rule rental property calculator on this site, I came up with a positive cash flow of $900. Asking price is 250,000. One unit is rented at 1000.

I'm worried about it being in a high crime area, and fear that I may have rent payment problems with some tenants. Right now only one unit is rented. The rest have been empty for some time. The property has been sold several times in the past 5 years. This is also a big red flag. What do you guys think.

[Stefen Lee]

yes I agree drive the area at night stop at a local store or gas station at night. That will give you the real vibe of the area. Also 250k is way to high do some research on any mortgage on the property. Learning the debt in property will give u a better idea on price to offer. You want to be all in Renovation purchase and holding cost for under 250k.