4 Plex

[Josh Butler]

Hey guys, I'm back with another 4 plex eval...I know it's not as good as other areas but I'm really perplexed with what to do.  Some of you will talk sense into me I'm sure but that's why I've come here!  Curious to hear what you think:

Purchase Price - 397,000

Rental Income - 3250

Mortgage - 2400 (FHA - PITI)

Water/Sewer - 180/month (for the whole building) (paid by owner)

Dumpster - 70/month (paid by owner)

Management - 300/month

Once again, I know these numbers aren't as good as other areas.  Salt Lake's market isn't so hot for buying rental units (especially if you don't have a ton of money).  These numbers only squeeze out a few hundred dollars each month (if even).  BUT...the reason I'm considering it is because of the purchase price...I think an appraisal could come back significantly higher than 397 (probably 430 or so?) especially if we're able to raise the rents.  If I could refinance into a conventional loan in a year or two then all of a sudden the situation gets a whole lot better.  

I've been looking for a multi-unit now for 6 months and am anxious to get something going in real estate (this would be my first deal).  Would it be worth going through with it even if it's not incredibly profitable for the first year or two?  Or should I just hold off and pick up a single family home with some roomies?  There just isn't much opportunity here for me!