Worth the Investment?

[Henry T.]

Long story short I’m a young millennial, at the age of 22, getting into real estate investing. I found a property that apparently that I shouldn’t let the opportunity pass me. I’m nervous and excited at the same because I don’t know if it’s worth the investment. It’s an okay property, it may sell in the future if the time is right. It’s costing me 140k on an FHA loan. It would make about $2800 a month but taking home about $1500 after all dues. Over time, I would save that money I would save for another property in the next year to invest into. Any advice or ppinters

[Ronan M.]

@Henry T.

Be careful in Englewood. Yes it is seeing much improvement but it can still be a tough area to operate in especially for a new investor.  Are you in the area and familiar with the area ?   It will help a lot if you have local knowledge. 

How many units in the building for $140K ? and what condition is it in ?   

Have you run comps to see if the price is right ?       Are your rental numbers realistic ?

I am an RE agent and I work parts of Englewood. I also own a building in that area.  Feel free to PM me if you want me to look at the numbers or run some comps for you.    A lot of people have bought properties in that area thinking the deal looked great and it turned out not to be so.  Do as much due diligence as you can.

Best of luck.