Buying my first property

[Evan Stephens]

So here it goes, after years of talking about it and reading books and blog posts and talking to everyone I know who owns real estate. I'm finally ready to buy my first investment property. I have my eye on a property that I think is or can be a great deal. It is a four unit property that currently has 100% occupancy. Total gross rent for the year is 24k, owner pays sewer, water and trash removal. Tenants pay gas and electric. Purchase price is right where I want it to be. After doing research on the property and finding an old listing for it, it shows it was bought as a foreclosure and the current owner has done some rehab work to property. After running a bunch of numbers in probably every rent calculator on the internet, and even with overestimating all expenses and adding property management and vacancy it seems like it would be very hard for the property to not make me at least 700$ a month in cash flow. We all know the saying if it seems to good to be true it probably is.  I know the neighborhood its in isn't the best, but it also isn't the worst. What else am I missing that I need to understand or do more research on? I feel like there is something I'm missing.

[Thomas S.]

Not sure without knowing all the numbers but it is extremely difficult to believe any property with rents at $500 a month can cash flow $175/door. Something is missing.