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Updated over 14 years ago,
New here, Need help deciding which way to go
Hi everyone! Im new here and looking for any advice from the "pros" I can get. My name is Josh and by day im a service manager for a 240 unit apartment complex. My wife and I just recently bought an REO for 62k and did a 203k renovation loan on it (what a PAIN!!) and finished out at 75k. The house conservatively appraised at 105k. Now should be around 120k to 130k. On that note, we were unable to sell our other house so were are renting it out now. It makes very little but does pay for itself. This got my wheels turning and made me think maybe I could do real estate investing since I know how to do all the work myself, but were cash poor. Everything we had was dumped into the 2 properties we own.
My question is: I came across 3 duplexes in a rough (and I mean rough) area for 28k for all 3. 2 units are rented @ 300.00/ month w/ 4 needing work (carpet, paint, etc. Taxes combined are about 900.00/ year Seems to me if I can get all 6 rented thats 1800/month. Ive read about the 50% rule. I believe these fall under that. I may be able to borrow the money from family to get a down payment to finance. Tax Value is only 22k a building, so I know Ill never resell at a huge gain but monthly cashflow would be pretty strong I think. Any suggestions would be appreciated, if you say no, why? If you think that would be a deal then please explain. Im in property management but still green on the issues i may incur. Thanks so much -Josh