. $200 is a bit low in my opinion and leaves very little room for profit if you run into any unexpected vacancy's, evictions, or capital expenditures.  

(full kitchen rehab),  having some room to absorb those unexpected expenses is a big deal.

Stay tuned for more of the unexpected...

Today an opportunity came up that was very unexpected.

If you don't have atleast an additional $10K saved up you may end up in a tight spot financially if you have an unexpected repair. 

On top of your down payment, you will have lender fee's and title/escrow fee's and then of course you should always have reserves for unexpected expenses and vacancies.

It’s also in a city I know very little about (Norfolk, VA) here are the numbers- I welcome your thoughts/ insights:$259k - sales Price (4- unit building fully occupied)$1460- total mortgage payment (after 25%) down $305- Property Management Feee (10%)$105- trash (total water is $315 p/m but seller bills water to tenants and has it written in the lease)$60 - lawn careTotal rents are $3050Owner says monthly expenses are low.The best case scenario is net income of $737 assuming $400 extra monthly expenses (for worse case scenario unexpected expenses which always come up) and assuming all the tenants pay their rent.Positives- - Seems to be a good cash flow if expenses are kept low and everybody pays- 4-plex is located in an 85% residential area- building is ok condition (built in late 70’s) except roof is 18 yrs old- all tenants are gainfully employedConcerns- while the neighborhood visually looked fine, according to crimemapping.com its a moderately high crime area.

You you can't imagine my delight when I discovered that in tenant friendly New Jersey a holdover tenant can be charged twice the previous rent!

It looks like she's already paying more than the ARV, so I would suggest trying get a bit lower on the asking price and budget at least $10,000 reserves up front for unexpected surprises. 

-if there was an unexpected expense (such as a car repair or family emergency) that the service member didn't have the cash or credit to pay for, we would arrange for a certain military charity to offer a no-interest loan (or sometimes grant) to get him by for a couple months.