Thoughts on this deal

[Douglas Curtiss]

Hey all. Wanted to run a deal by the BP community and get some thoughts. The deal looks great on paper, but with all this craziness in the world and a possible impending major recession, I don't want to jump in to something and regret it.

It's a 4plex that I would be buying for longterm cashflow. It is currently listed at $369,900 and has 2 units on leases until this summer, one on a lease until the fall and the last one on a lease until Jan 2021. All tenants are reportedly current on rents The current owner appears to have bought it at $179k in fall 2018 and reportedly put $100k into it ( a new roof, new insulation, new dual pane, energy efficient windows, fresh interior and exterior paint, shaker cabinets and counters, new tile and carpet flooring throughout, and electrical/plumbing improvements. ) 

At the asking price, with 20% down, assuming $3k in repairs it would give about $1100 in cashflow (above all expenses) which would be 16.5 % cash on cash return. 

My question is how aggressive to be with my first offer given the current market situation and renters around the country not paying rents on time b/c of job losses. I don't want to be greedy. On the other hand I don't want to overpay and regret it. Thoughts?