IS A 3 PLEX BIG ENOUGH >?>? buy / hold

[Nicholas Moffett]

I did my first flip recently  on a single family and made $37 bucks.....

Ive been doing some research and listening to Grant Cardone, and how he buys his properties with a MIN 15% cap rate on multi family apartment complex's.  20+ units.

I am wondering what you guys think ?  Is a 2-3-4- plex too small for  a buy and hold ?
EVEN IF THE Cap rate is right ?

I found this deal   HERE are the basics
70k + 20 rehab = 90k....
I have to "live in" 1 of the 3 units for a year since it is a homepath unit.  
each unit rents for 600-650 .  

Is this one worth the time, maybe good to get my feet wet in the rental game ? or is this a big pass ?

http://tampa.craigslist.org/psc/reb/4893465105.html

[Eric Thomson]

Hey Nicholas,

First off, is buying the home as an investor at 10% down not an option? I know most Home Path properties qualify, unless the home is in the first look period. It may be worth going this route and making another $600 per month.

The deal itself seems pretty good, depending on the route you take... Potentially $1800 in gross rents per month on roughly $500 per month note is tremendous, especially for your first deal. My biggest question is why are the renovation costs so high? Is $20,000 what it would take to be rent-ready or flip-ready? If you are pouring that much cash into it upfront then that is going to take you several years to break even. You might want to check to see if that home is eligible for renovation financing through Home Path...