4 plex eval...Put it under contract or not?
Hey Bigger Pockets,
I've been evaluating a 4 plex these last few weeks and I can't decide what to do. (this would be my first RE purchase). The basic numbers are this:
Negotiated purchase price: 336,000
FHA monthly payment: 2150
Rents per unit: $650 (market rents are $720 I'd say)
The current tenants have all been in there for quite a while so they're good stable, quiet, trained(!) long term tenants. I could raise rents on them but then expose myself to vacancies and such. My real quandary is this, I don't know what the average monthly expenses are and I won't have access to that info unless I get it under contract. But if I do that, I put my earnest money at risk, and also risk frustrating everyone involved in the process if I were to simply back out. Thoughts? Advice?
My agent thinks a swinging deal (of course) but my gut is telling me to walk away, but in my area there really aren't any good 1% deals or anything close that comes up. This has been one of the better ones.