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Updated over 5 years ago on . Most recent reply

Is this a good investment for a beginner? 7 Unit MF
I am looking to take a leap of faith into a property. Does it sound like a solid choice to be a long term hold. It's in a class C neighborhood at best.
Property has 7 units all rented with good history. Property is 3 parcels that has 3 sfh's and 2 backyard duplexes.
Current rent income is estimated at $4,000/mo. Taxes for year are $5500 and insurance is still unknown but figure 2-3000. Maintenance cost I'm aware of is lawn and that will probly be 100-120/mo.
Asking $350,000 for whole package. I have $100,000 to put down and can get hard money loan for balance with intent to refinance within 12-16 months.
Buildings are all 60-80 yrs old but in good shape. Has been maintained. Tennents have been in place for 10-25 years and would like to stay. Rent rates are below market 20-25%.
Does this add up to a decent property worth investing in. I don't see the property itself appreciating much over the next 10-20 years so it would strictly be for rental income.
I appreciate all and any input.
Most Popular Reply

@Mike Baldwin what do the numbers say. Run it through a calculator. What is the vacancy factor, repairs, CAPEX(capital expenditures), property management. Roof capex: example 3 sfh roof replacement $6000 each. Duplex $10000 each. You have a total of $38000 / 25 year life span/ 12 months = $127 per month. RE is all about the math learn to love your calculator it will keep you out of trouble.