My first Multi

[Chris Gawlik]

I am investing in desert hot springs and the surrounding areas. I could actually use some advice on a property that we just opened escrow on. Its in Desert Hot Springs and I'm not very familiar with that area. I was thinking of using it for section 8 housing but am very new to investing and this building is not a straight up 6 unit. Its zoned residential and there are 6 separate units but not all of them have there own kitchen some have sort of a kitchenette. So twelve bed rooms total and I'm pretty sure 6 baths. Can any one give me any tips on owning rentals in a not a totally ghetto area, but i guess i could say a little run down. Desert Hot Springs in also know as the arm pit of the desert lol so...Are section eight requirements very strict does each unit have to have its own legitimate kitchen to use the place for section eight. Any advice would be helpful this is my first rental. The owner lives in one of the units and the total rent that comes in from the other 5 units is 2300 so if you count his i think it can bring in 3000 or so this is not net rent. We haven't even inspected the property yet so i really need to analyze this deal, but like i said i am very new. Were picking it up for 135k hes going to carry 35 k for interest only payments at 11% with an 18 month balloon. I'm giving him 100k cash. I could also use some help on a net rent formula, thanks for your time.