Property prices are lower compared to larger cities, offering the potential for higher returns, while the demand for rentals remains steady thanks to a large student population and growing workforce.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

A small multifamily property is a smart choice for a first investment—it offers a great balance of income potential and manageable scale for someone new to the space.Don’t worry about being ambitious; it’s clear you’ve done your homework, and you’re already ahead of the game by setting a clear goal.

These props were in good areas so I am guessing that is why. keep in mind true A class areas whould see majority of comps being sales to homeowners NOT investors.. homeowners dont care what the cash flow is or the potential rental income is only investors do..

Check with the lender but my understanding is they will count that potential income as well.

Here's a breakdown of the situation:Current Occupancy: 80% (16/20 units occupied).Current Gross Rent Roll: $14,265/month.Market Rent Potential: $17,665/month (100% occupancy).Renovation Needs: 15 units require full renovation ($10K/unit), 4 units are 75% renovated ($2.5K/unit), totaling $160K in renovation costs.Vacancy Loss: $41,820/year in lost income due to current vacancies.Cap Rate AnalysisThe seller lists the cap rate as 9.59%, but this is based on the projected NOI of $119,858 (assuming full occupancy and market rents).

All too typical park owner who took all the profit out of the park without reinvesting in the business then wants to sell you the potential he was too cheap to invest in. 

See, now we removed arguably 90% of those overwhelming potentials. 

I worry that a disgruntled renter could see potential deep pockets if they did their research. 

Assume a couple of months of vacancy, consider potential unexpected repairs (like HVAC or plumbing issues), and test the numbers with rents dropping by 10-15%.