Advise on a 4 plex (first investment)

[Marina Flu]

Hi everybody, 

I'm hoping to get some advice on a 4 plex that I'm considering.

It is located in a C- (do not go there at night neighborhood) of Los Angeles.  All units are 2 bed 1 bath.  The property has been maintained by the property management, relatively well taken care of.  Long time tenants.  Asking price is $345,000 each unit is renting at 700/month (total $2800).  The owner pays for water $100/month and trash $100/month.  I would need to add management (250), taxes (270), insurance (150), vacancy rate, and maintenance.  The rent is under market, an apartment 2 building away is asking for 900/month.

Can you please help me!

[Joel A.]

The water bill at $100/ month seems pretty low, I pay anywhere between $180-220/month on my fourplex. Other expenses to consider are pest control- roughly $750/year, gardening - between $480-$1200/year, and taxes in LA are typically 1.25% of the purchase price- so in this case about $360/month.