C Grade Apartment In Escrow In Low Income Area As Investment?

[Preston Moore]

Hi Peeps

So, I’m a noob real estate investor looking for some advice on a deal I currently have in escrow. I know I can cancel but I’d prefer to seal the deal. Here is the link to the local property -> https://www.redfin.com/CA/Fresno/332-N-Roosevelt-Ave-93701/home/96061157

As you can see the property brings in over 2600 per month, all units on month to month at the moment. Older property in a part of town that is less desirable. Schools are not great but its not a particularly high area for crime. Just low income. The plus side is the rent is low for the area and it draws ton’s of migrants who rent for ever and ever.

Based on the cash flow, I see this as a good investment for my local area and it fits my investment goals and budget. My question to you the more experienced investor is, is this a deal you see as good for an entry level multi-family investor?

My primary goal is to replace my income with the cash flow from multiple multifamily units, this being the first.

I appreciate any and all feedback!

P.S. I SEE the expense too… Getting clarification on that from my agent as I type this…

[Hadar Orkibi]

Thats is one of the reasons i don't touch and even look at house conversion in to flats.

More often than not, a lot of the work is not permitted and the owner pay for utilities. 

Try to look for purpose built apartment building. the income to expense ratio, as rule of thumb shouldn't be more than 50%. if it's more than you maybe able to add value by reducing expenses and increasing income.