buy a fix and end up with no equity, but nice cashflow?

[Daniel Holtz]

Hello Everyone,

I am looking at a possible deal that is a 4 unit property. The average gross rents would be around $2100/month comfortably. If I can purchase it for about $20K, it would need about $50K overall to bring it up to speed. It may be slightly over improving it, because the ARV is around $70K. I am still considering the deal, because the cash-flow on the back end would be nice and I can refi and pull much of the money for the rehab overall back out of it. After this deal is complete, I would have a property that the cap ex would be low for many years to come and I may be able to 1031 or something along those lines into something larger. Just looking for some overall input as I really think this is a coin toss depending on your perspective.

Thanks,

Daniel