My First Deal, Buy or Keep Saving

[Dylan Thomas]

Hello everyone,

I have been analyzing a 3-4 unit property that has been on and off the market for over a year. On paper, my numbers are looking like it will cash flow nicely. I guess with this being my first deal I just need some assurance and encouragement to jump in.

The property is listed at $125,000 with 3 units rented to long-standing tenants. There is a “storage” unit that could be fixed and rented out as a fourth unit as well. The current rents are $200 under the market average of $700, so there is room to increase. All units are metered separately and I could house-hack with $4,500 out of pocket. According to my lender, the monthly mortgage payment would be $1,000/month (taxes and insurance included).

My concern is not having a large safety fund if things were to go wrong soon after I purchase. Should I jump on this deal or keep saving to have a cushion later down the road?