input on this quadplex

[Aaron Thivierge]

Hi BP, I am still trying to acquire my 1st buy and hold. I found a quadplex (4 units at 2 bedroom/ 1 bath each) that is in a C+ neighborhood.  Here are the numbers.  What do you think?
Purchase price: $69,000

$17,000 out of pocket cost to buy includes 20% down and $3,200 in closing costs. 
Property tax: $1600/ yr
mortgage: $3250/ yr
Repairs: (5%) $960/ yr
Vacancy: (10%) $1920/ yr
Insurance: $1800/ yr
I'll be my own property manager
Currently rented at $400/ unit/ month = $1600/month

20% cash down, financing 80% at 4% interest amortization over 30 years. 
Annual expenses: $9425
Annual income: $19, 200

[Steve K.]

A couple things you can look for when driving through communities to see if it's a suitable property.  Look at the vehicles parked on the streets or in front of the houses.  Do they look well maintained and look like newer vehicles?  Are there bars on windows?  Are there high fences in the front yard?  Every one has pit bulls?  Would you feel comfortable living there or would you put your family in the same building?  If you wouldn't live there, then you cannot "house hacking".  One of my co-workers lived in New Orleans and he could hear occasional gun fire in the night from where he lived.  It's not from gun ranges.  ;-)  

Here is a cool website that downloads Police's database for a particular area and put it on Google map.  Miami example.  http://www.spotcrime.com/fl/miami

Subscribe to alerts and look for places where assault or murder rates are low.  Good luck.