To buy or not to buy? That is the question...

[Mubasher Riaz]

So there's someone around my area selling a 9 unit completely remodeled and all rented out apartment building. He said he owned it for 3 years and bought it from the bank before that. He also claims, he's making $3000 profit per month after all the expenses are paid. He has it listed for $150,000 and if I put $50,000 down then I can make a monthly payment with about 6% interest on it. What do you guys think about this? Any advise would be highly appreciated. Thanks.

PS. This is what his ad said on the website "OFFERING A STRIP OF TOWNHOMES, 9 TOTALLY REMODELED AND ALL RENTED OUT, ALL HAVE SEPERATE METERS, NEW ROOF, NEW HANSON WINDOWS, NEWER FURNACES, ALL HAVE NEW KITCHENS, ENERGY EFFICENT FURNACES, VERY SOLID BUILDING.TENANTS PAY ALL UTILITIES ASKING $150,000 (land contact available w/$50,000 down/ low monthly payments)"

[Tyson S.]

Basically, over the course of the life of the building, you will spend 50% of your rent income on expenses. That includes everything except principal and interest. Check out this thread: http://www.biggerpockets.com/forums/52/topics/18371-help-me-understand-this-deal-and-5-2-rule

And war zone is kind of both a figure of speech and an actual term. It describes homes in high crime areas, which have a lot of other problems that accompany them.