My first deal - Multi-Family yes or no?

[Phillip Le]

Hello,

I'm a newbie REI, looking for my first deal, so any advice will be much appreciated. I've been looking at this deal below, the asking price seems very fair but from the pictures, it seems like it needs a lot of TLC and rehab. I'm not sure how much the costs for rehab will be, but should I even consider this as my first deal? The cashflow is very tempting, which is why I'm very interested in this. FYI, I'm looking to buy it with straight cash (possibly borrowing from private lender), and will refinance it afterward. This property is in Louisville KY so any insights from the local investors will be much helpful, and thank you !!

 http://www.loopnet.com/Listing/20155023/3928-South...

[Michael Boyer]

Just looked at the photos and I would have a pretty long list of repairs, fix ups, concerns (pages and pages and pages).

I love horse racing, but this one looks like a long shot for the novice, apprentice property jockey...

I would think you have some stakes level tenant and property issues to handle right out of the gate (I can see potential mold, maybe lead paint, vinyl asbestos tile, habitability issues, lots of remodeling etc.).... Potentially tough situation from day one. And I have not even met the tenants or got the disclosure, rent rolls, numbers etc....

I would opt for a maiden race to start--a better maintained and maybe even higher end first property in a better situation--then maybe this would be a race for later on down the line.

Then again it is not my circuit or home track so talk (alot) to professionals in your area as mentioned (contractors, property managers, realtors, investors, etc). Get the full picture before making the bet....Long shots can come in big if you have the right situation and information.

Best of luck....