Should I offer on this multi-family that cash flows $300/mo?

[Jeff Plotkin]

My agent just sent me a 4-unit property that rents for $600/door. My conservative estimate is that it will cash flow around $300/mo total. My other property in the area (SFH) cash flows $200 and the purchase price was half as much.

Is it worth investing in a multifamily that does not cash flow that much better than a single family home? I am not sure if the extra work associated with a multi-family makes it worth it.

[Jonathan Greene]

4 doors for $300 total is not worth it at all. Risk to reward ratio is not there. One major repair will ruin you for two to three years. You would be managing four tenants, four sets of appliances, four furnaces, four hot water heaters for $300/month. There is no value in that.