Midwest multi-family buy and hold

[Paul Stern]

Hi everyone, I am new to the site. I have been reading posts for the past month and thought it was time to say hello. I bought my first investment property last June, then I found this site...timing might not be my best friend, but better late than never. I wanted to get one tax season out of the way before deciding if real estate investing was my thing. So far I have been having a good time, and long term forecast looks good....

So I am about to put an offer on my next property. I am looking mostly for small multi-family. My first property was a 4 plex for $150k. My only real mistake was over-renovating. Couple that with an investment trip to look at a larger property in my home town and I had a small loss. The first couple of months of 2015 tell me I might make up for that loss in short order.

The next property looks like it will be two 6-plex buildings on the same land. It is a REO and sold "as is". Three units need carpet and various fixtures. Two others are vacant. Seems like the seven full units will carry the rest, so I should be able to get cash flow positive quickly. All this for a price less than $25k/unit. What do you think?

[Paul Stern]

@Roy N.  Thanks for the advice and insight on some of the things to expect

@Larry Fried  Thanks for making me think a little more about the value plays

I heard back from the bank. There is one other offer. They are asking for our Best and Final offer. the caveat is no cash back at closing. I offered $27k over asking price with $20k back at closing. Anyone been in this situation before? Could you comment on your experience?

Thanks also @Antonio Coleman @Brandon Turner  @Mike O'Connor  for the encouragement!