Looking for your opinion

[Graham Mink]

Hello,

I have an opportunity to purchase 7 units for $90k. They need approximately $50k in renovations to get them rentable. The units are in a safe part of town with an above average rental market.

Gross income: $4650/month

50% Rule for Expenses: $2325/month

Debt Service: $936/month

Positive Cash Flow: $1389/month

2% Rule?: Over 4%

The numbers look great on these, I have a couple of hang ups. First I am nervous about the units being over 2 hours away from me. I manage my own properties currently and I like the control. I don't know how comfortable I would be with someone else managing the property but I can't drive 2+ hours every time there is a problem. At some point I am going to have to relinquish control if I want to become as successful as I plan to be. Should I just "get over it"?

My second concern is that the units are bank owned. On the initial walk through everything looks good. Structurally sound, some deferred maintenance but no big problems that I can see. The bank won't turn the water on so I can see if there are any problems with the plumbing, it's their policy. Even if there is some repairs needed the numbers are strong enough to cover it, but I still am leery.

Any advice on how I should handle this? Is there anything else I should take into consideration?

Any help is greatly appreciated! Thank you for you time!

Graham

[Therese V.]

Even if the bank won't turn the water on , does your area have where you can get it put on for 2 days and pay a certain fee in order to conduct your inspection?