Is it a bad deal to buy a multifamily that is already renovated?

[Phil Pat]

Is it a bad deal to buy a small multifamily ( Triplex or duplex) that has already been fixed up and renovated? I feel like my cash flow will be very small

Thanks

[Rick Albert]

Cash flow will be small but there are some major advantages to buying done properties:

1. You can rent right away.  A lot of newer investors don't account for vacancy during the remodel.  

2. Less cash out of pocket.  If you really wanted to, in theory the money you would have put towards renovations could now be used towards a larger down payment or even buying the next property.

3. Hopefully less surprises since everything has been renovated.

I have a client who bought a 2 unit that was flipped here in Los Angeles.  That is his highest grossing property to date.  Review the numbers and if they work, they work.