Upstate, NY Deal

[Greg Borowiec]

Hey Guys, I have been dabbling with the thought of getting into real estate investments and after running across BP it pushed be over the edge to do it.

Here is a deal I came across but wanted to get your thoughts on it.  It would be an investment property.

This is a 4-plex unit (1 Bungalow with 3 unit in the back).  Basically 2 buildings on one deed/property.  It looks like it was recently renovated and each unit is currently rented out.

They are asking for $265K, which seems a bit high and was going to offer $238.5K or possibly less.

20% Down: $47,700

Rental Income: $3,650/Month

Mortgage: $918/Month

50% Expense Rule: $1,825/month (I know the taxes are about $340/month)

With that I believe I can have a monthly cash flow of at least $900 and $10,800/year.  This gives me roughly a cash on cash return of 23%

Is there anything I am missing or overlooking?