Which would you be more interested in......A good rental property or cash in pocket?

[Rod Smith]

Let me explain! I have an opportunity to purchase a 4 unit multi-family rental propery which should be a good income producing property. I am concerned a little about the rents being charged currently, but it still makes sense. 2 of the 4 units are currently rented for $450.00 per month and if purchased, I plan to upgrade the other 2 a bit to justify charging $550.00. Each unit is 2 bdrs, 1 1/2 ba townhouse.

Anyway, that is just a little background. My main dilemna is if I purchase this property, the 25% downpayment my lender is requiring will just about wipe out my cash/money set aside to invest. Or I can buy the property and get my money back slowly over the next couple of years.

On one hand, I think it is an awesome opportunity because I would be getting 4 units under one roof, with little to know renovation needed and only have to pay closing costs once versus trying to chop the money up and buy a duplex now and maybe another in 6 months. Not to mention that the per unit price of the quad is actually lower than what I would pay per unit for 2 duplexes.

So, what do you think BiggerPockets? Go for the good investment or hold on to more of my cash for a rainy day! If I am able to keep my vacancy rate low, I can recoup my investment in a few short years and maybe even buy something else in a year, but it will be tight for that first year.

FYI: I do have a full time job so I am not depending on this money to live, but it is my cash reserve.

Your comments and advice will be greatly appreciated.