Investing in a four plex

[Corlin Anderson]

I am trying to find a good quadruplex in eastern Minnesota or western Wisconsin, and I’m curious to know from people in the area if I should be looking for good cash flow in the area or if I should focus more on appreciation? Any and all advice is much appreciated!

[Jim K.]

@Corlin Anderson

This is your first post, this seems likely to be your first deal. If it is, I would worry less about the great cashflow-versus-appreciation debate. Get something that can be insured, that has a straightforward building design, that doesn't need a lot of work, that doesn't have real problem-tenants-in-place deep in the ghetto. I've always believed that it's better to work to hit a single than to try to hit a home run in your first deal, in the larger scheme of things. Use this first deal to get your feet wet, to learn if this is for you.