Potential First Deal?

[Aaron Bard]

Hey everyone,

So I came across a deal a few months ago for a 4-plex about 40 minutes from my work.

the purchase price is around $247,000 and cash flow would be minimal to begin with. Rents are below market value but can easily be brought up. This particular property is right on the outskirts of a town that has really started bustling in the last few years. (Also surrounded by 3 different universities).

Minimal work needs to be done on the property, as all the electrical, plumbing, and roof are fairly new. There are visible opportunities to add value to the property by making some minor repairs and finishing a little "workshop" room.

The tenants are long term and don't seem to be going anywhere, and appear to be great because the property is still in great condition.

I'm not sure if I calculated the cap rate correctly but it would come out to 0.167% cap rate.

I'm able to purchase with an FHA loan of 3.5% down, and have completed certificates for the state to cover my down payment and much of the closing cost.

Payments would be about $1,700/mo. While gross rent income would be $2,600 after I take over a unit.

Electric is paid per tenant. Heat, other utilities, and mortgage insurance are TBD.

The only downside is that I'm 40 minutes from work, but it's all interstate driving.

Is this a good deal for me to get my foot in the door? Or not a good idea?

Any input is appreciated.  Thanks!