Help analyzing quad-plex turn-key property!

[Amy Engelhard]

Thank you in advance for any advice!  I'm looking to do my first investment deal and want to make sure I'm asking all the right questions going into this.

Market:  Northeastern PA - Scranton.  

The property is a renovated 5,000 sq ft Victorian built in 1910.  The house has been converted into a quad-plex and is fully rented currently.  They say annual net income is $28k.  Asking price is $259,900.  Utilities are paid by owner (they haven't been split).  It is already being managed by a property management company and I plan on keeping it this way.  Property tax ~$2,000/yr.

The property is located in an area close to a college/medical school and 2 hospitals so I don't foresee any future problems renting it out.  That being said -  I don't expect any appreciation due to the area it is located.  Scranton is relatively stagnant if not declining as far as job growth/population growth.

A few more details that complicate / make this slightly challenging:  I am located in Portland, OR and the property of interest is in Scranton, PA.  Scranton is close to where I grew up and I still have a lot of family in the area including an Aunt who is a real estate agent, and an Uncle who is a fully licensed contractor.

Also financing- I plan on getting traditional mortgage with 20% down payment.  I assume this type of financing would be OK in this situation?

I definitely want to have a full inspection done and verify the credentials of the contractors who renovated this place. Any advice or experience on a deal similar to this is much appreciated! 

[Kevin D.]

@Amy Engelhard, $260k for that type of property sounds a little rich to me.  I'm an agent and investor in NEPA and all of my rentals are in the Wilkes-Barre suburbs, about 20 minutes south of Scranton.  I've seen 4 units sell for $200k down here, but can't remember any going for more than that.  For what it's worth, I'd ask your aunt to send you some comps for sales in that section of Scranton that would justify that valuation.  Also, between you and me (and the rest of Bigger Pockets), I'd be very wary of paying the electric bill for four units.  I pay for gas heat at one of my 4-unit properties, and I can live with that because I can control the thermostat, but ceding control of electric would be a red flag for me.