4plex Under Contract BUT!

[Bryan Valerio]

HELP! I just got a 4plex under contract in the Little River- Miami, FL area. I just went through the inspection and the property is in pristine condition, essentially turnkey with some value add opportunity with increasing rents to market. Section 8 tenants

2 units 2 bed 1 bath

2 units 2 bed 2 bath

Purchase Price $640k

Current Gross Rents $5300

Potential to eventually increase to $6000

9% COC return which is good in this market with potential to get 11%+.

My concern is during the inspection I learned from tenants and neighbors there are shootings at the end of the road at another building community. This happens sporadically and police installed video surveillance to curb the crime. The property is literally right next to a High School so the property itself has not been met with crime but it is evident down the road. All signs point to Little River being in the path of progress with investors turning the communities around. This 4plex happens to be right in the border of this gentrifying area. But this is partly speculative which is what's concerning. The returns are good but the crime gives me cause to pause about the true potential of rent increases and value appreciation.

What should I do here? Any Miami investors with close knowledge of this area. Or any investors who have been met with a similar situation?

[Dan M.]

Fear is the mind killer. Do the deal and stop second guessing if you know it to be good. All the hereseay and people saying how bad it is aren't multi millionaire real estate professionals.