Opinion on Fourplex

[Adrian Carlos]

Hello Everyone

I would like your opinion on a fourplex apartments I would like to purchase. Here is some information: Asking 120K producing 2000.00 a month(500.00 per plex). They pay everything except Water. Flat roof. Built in 1960. Their in a Low Risk flood zone. Current owner pays 567.00 per year for flood insurance. Apartments are always 100% occupied. And currently 100% occupied. Apartments have not been appraised recently something that I dont like. Also they are running swamp coolers. Roof has no leaks. Opinions? Suggestions?

[Rob Gillespie]

Too lean for me! Flat roofs will ALWAYS leak, and are not cheap to maintain.
A good rule of thumb, is to take your gross rental income, and cut it in half. That is how much it will cost to operate the building without your mortgage payment. Your payment on that building will darn near eat up the rest, depending on how much you put down.
I know on paper you can make it look like a sexy deal, but in reality, it is a tough one! No one gives away a pot of gold, why does the current owner want out of a 100% occupied cash machine?
Good luck man! Keep lookin! :D