Pondering 4-Plex purchase

[Greg Starr]

Hi guys, Im new to the site. And realizing I've got a lot of studying to do. I currently own two rentals and am looking to buy a third, but am apprehensive about it. Its a 4-plex all brick built in 1950 in good shape, good windows, good roof and the units are in good shape. Its in a low inocome neighborhood, but not a high crime and its on a quiet street. But it has high taxes and owner pays for gas and heat. So here are the numbers:
Asking 89900.00
Taxes: 9000
Water: 400
Gas : 2083
Insurance :2100
Rents : 2130
I dont know how high taxes and heat included conforms to the 50% rule if at all! If I offer 80000, 382/mo P&I. But after paying all these expenses I get 630/mo. But that doesnt include vacancies or repairs! Not sure its worth it, even if I offered 70000. That heat scares me. So what do you guys think!

[Al Williamson]

1. I saw a gadget that automatically adjusted boiler heat based on the outdoor temperature. This would be a smart way of minimizing heating expenses.

2. To be successful in a low income community you will need to be more hands on, network with neighbors, monitor for signs of neighborhood decline, etc. It's not as easy/passive as in a middle class neighborhood. Personally, I love the community building aspect. But if it's not your thing, then I would discourage you from this type of investment.

Check out this BP article 4 Success Factors for Profitable Inncer City Investments