[Calc Review] Help me analyze this deal

[Kallie Cornett]

Hello - This is our first investment property, and we're excited/anxious to get into the multi-family space. Seller just accepted our offer, but we still have multiple opportunities to walk away. We realize this isn't a very impressive return, however, we're anxious to get momentum going and get our "white belt" as Brandon would say... what do you think of this deal? THANKS for any input! 

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*This link comes directly from our calculators, based on information input by the member who posted.

[Greg Scott]

Assuming your numbers are correct, a 1.8% return (without any management fee) is not a deal I would do.  Unless you think you can bump rents or find a way to reduce other expenses, you are paying $100K to get several years of unpaid practice at landlording.  

There really isn't that much difference between single family and small multi family.  Personally, I'd rather see you invest in 2-4 single family rentals that give good returns.

All that said, better to get started than do nothing at all.

Good luck.