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Thanks guys for your insight!

MikeOH, I have a question though. Where are you getting OE always at 50%? Is that what it is based upon your experience on average or do you typically set that a little high as a worse case scenario? I know the expenses will add up and it's better to be safe than sorry, so I was just wondering if that was your rule of thumb.

Thx!

Taxes are roughly 1% of PP.
Owner pays water and trash which I will get the numbers as well as the maintenance history of the building.
Rent seems to be a tad low (maybe 5%) from others places in the area.

Thx

Hello everyone. I'm new to the forum and have enjoyed reading everyone's posts on the subject.

I'm wanting to get started getting my feet wet and REI and have about 40k in cash that I can spare to invest. Recently, I came across a brick 4 plex across the street from my restaurant that I own. Price $170,000. 4 - 2br 1ba units. Total rental income $450 per unit. $1800 per month.

All I know now is that the roof was just replaced less than 3yrs ago. I am very good and handy at repairing things and have an arsenal of people I can call to fix just about anything (electrician, plumber, HVAC, etc) because of being in the restaurant business, I have to deal with repairs nearly 1 time a week (at all hours).

Assuming that repairs are minor after inspecting it (less than a few thousand $). Does this sound like something that would be a good investment?? The area is good. Lower-Middle income hourly working people in a growing area with tons of new construction/business development around.

Thanks for any input.