Would you buy a 4 plex at market/retail price?

[Steve Weihe]

Hey all,

Looking at a 4 plex for $165,000. Needs minimal rehab, is in a C neighborhood and is fully occupied. Rents are at $500 each. Came out to $350/mo cash flow total (just under $100/door) with a 11.40% COC return.

Since I'd be using family for the down payment and would like to do a cash out refi in a year or so (to pay them back plus 10%), not having instant equity (buying at a discount) presents a problem for a future cash out refi.

This property still cash flows but would not be a "deal" since I'm not buying below market.  This would be my first property so I'm excited but want to be cautious at the same time.

To buy or not to buy?  Thank you.