Multi-family deal seems too good, what should I be looking for?

[Ilya V.]

Hi everyone,

I am starting out in BP and real-estate investing in general. I am looking to get involved in my first property. 

I ran across the following posting and it seemed to me to be non-comparable to other sale properties in the location. 

What flagged me was that this was a 27 unit building for $269K. Granted this property is in Detroit (though not in the worst neighborhood), but they claim 81% occupancy. Other properties with this many units are selling for much more.

I know the maxim of "you get what you pay for," so can you please advise - what should I be looking out for if I invest in this property? I feel like there must be something obvious I may not know about as a new investor that would cause the price to be what it is.

I would appreciate all advise.

Thank you!

-Ilya

[Didi Siani]

With a lot of Multi-family there are AGAINT CODE constructions and additions without permit - Be aware of codes & zone.

 This is Detroit prices :) and for my opinion is NOT too good to be true.
Profit about 12%
It's will take you 8 years to payoff your investment.

I would recommend you to proceed with the purchase ONLY if you planing to hold it as an income producing property.