Buying a 4-plex for under $30k.. but in a class D area. Worth it?

[Benny Morfas]

Hi everybody!

I thought I’d turn to the forums because I saw an interesting deal, but there’s some red flags.

Since I’m relatively new to real estate, I’m hoping some more experienced people can guide me in the right direction.

I found a deal for a 4-plex out of state listed at $39,900. It’s been on the market since January 2019 so I feel like it could easily be bought it for around $25-$30,000 or even less. The property details list that each unit rents for $475/mo. It sounded too good to be true.

Here come the red flags. It’s in a class D neighborhood and supposedly one of the most dangerous areas in the state and the property is in “distressed condition.” I know that it’s highly advised against investing in class D neighborhoods.

If somebody could give me some advice on what to do I’d highly appreciate that! Thanks so much!!