Multifamily in Richmond, CA

[Kimber Lockhart]

I'm a fairly new investor looking at multifamily in or near Richmond, CA.  

I find a number of properties like this one: https://www.redfin.com/CA/Richmond/4519-Taft-Ave-9...

It's listed at $783K.  Three units vacant.  That's $2500, $2000 and $1500 market rents.  = $6000.  With 25% down, mortgage is $2750.  

That seems to pass a sniff test for cashflow.  It's not that easy -- what am I missing?

[Kimber Lockhart]

@Thomas Shepard Thanks for asking!  

The original linked property was a great learning point: the agent repeatedly indicated he was unable to get in touch with the owners to consider my offer, which was competitive enough that it should have triggered a counter. It's hard to say what was really going on, seemed like fishing the market. The answer to what I was missing with a MLS property vacant and able to cashflow without a lot of work is that it wasn't actually for sale at that price.

I've since acquired 10 units in the East Bay (4 in Richmond).  I'm finding that my cashflow numbers are modest compared to the claims others make on these boards.  I'm not interested in investing tons of time finding bragging-rights deals, but am happy with the buy and hold approach.  I'm centering on a philosophy of finding a middle ground between cashflow and appreciation.  I have been able to find buildings in the black cash-on-cash by a few percentage points that (I believe) will also appreciate due to proximity to the Bay.  We're not talking SF-over-the-last-10-years appreciation, but I'm interested in predictable investment returns, not gambling.