4 unit starter building

[Rich Schroeder]

I haven't physically looked at this property yet (I've seen pics of the outside), and am waiting on the expense/income report from the owner. But here's what I have right now....

Asking price: $49,000
Comps: $100-110k
monthly gross income: $1050
needs new shingles
owner says the building needs "updating" (the outside looks fine to me).

key points-
rents are currently 20% below market
tennants pay all utilities except water and sewer
building has electric baseboard heat
tennants currently have free washer/dryer use (this would change quickly if I purchased, and would provide increased income)

I know the first thing I have to do is determine how much updating needs to be done. All units are currently rented. I will update with more detailed numbers soon, regarding expenses. This is 2.5 hours away from me, so I would have to get a property manager. :badwords:

Thanks,
-Rich