I've been looking at them for $120k.I know it is more of a risk but if the numbers work I don't know if the benefits might outweigh the risks?

But if it is cheap enough and generates enough cash flow, the cons in the deal could be outweighed.

It hurts alot less when it is a smaller % of your income.Another plus is it is easier to manage having 4 units at one location vs. driving to 4 differnet locations to manage.Of course multi families do have down sides - but the positive IMO definitely outweigh the negative.I'd like to end this by saying Single families can be a great investment as well if you get it at the right price and location.

IMO the downside risk outweighs the upside potential.Doing a flip from a distance can be problematic but not impossible if organized correctly.

What would be your concerns, and in your eyes would the risk outweigh the reward?

But until you've maximized your 10 low cost conventional mortgages, the opportunity cost of paying down principle FAR outweighs any interest savings.

I think the costs WAY outweigh the benefits.

I have been involved with private lenders who had to foreclose and did not because the cost far outweighed the benefit .

You could have an illegal conversion and permits were never pulled.Unless you are a contractor or a seasoned investor you can't begin to fathom the costs involved with a property of this age.The reno costs could outweigh the value of the building and the land combined.Galvanized pipes,foundation issues,out dated electrical panel,knob and tube wiring,asbestos,lead based paint,mold,radon,update of new HVAC system,septic and or sewer issues,etc.Unless maybe they owner finance you and you do the sweat equity over time and refinance them out later I wouldn't touch it.Make sure you get an inspection.

These, amongst others, are the advantages of lending locally.In our opinion, the quality and character of whom you loan to far outweighs all other criteria.