First Deal - Looking into purchasing 15 units

[Shea Spinelli]

We're trying to find our first deal and stumbled into a little bit bigger one than we anticipated. We got a deal for 300k on 2 acres. 15 units, 3 duplexes and 3 empty units. They're low to middle income and the gross is $5,750. Owner financing for me through the couple who has owned them for 20 years. They pay all electric, gas, water/sewer - roughly 10k per year (opportunity to shift to tenants - separate meter later). Cash flow with whole thing financed at first is ~$1,100/month. Question is, I work full time and so does my wife, newly married. Is 15 units, without a property manager at 300k too much for a newbie to take on? Am I putting my family's well-being at an unnecessary risk by biting off too much? They also have 5 units in a rural area for 175k, but only two have tenants and only 4 are ready to rent. There's some other oddities to the rural ones. Maybe go with smaller deal and get an option in place on the larger? Any help is appreciated. I want to pull the trigger after confirming rents and utility costs. Biggest concern is an exist strategy since they're low to middle income properties.

[Alex Deacon]

@Shea Spinelli Shea please be ultra careful especially for your new purchase and your lifestyle. Lower income properties are more difficult to manage also. My company manages 600 units and I have been involved with over 1500 transactions. I buy 4-6 properties a month in Pittsburgh and I just want to see you make a very solid safe first investment. Just make sure you run very accurate numbers and confirm all the information. Over kill on the due diligence. Also maybe a good idea to talk to a successful local investor who buys property in that area to pick their brain.

Best Wishes