Updated over 3 years ago on . Most recent reply
Is this break-even deal worth doing?
So I just put a 4 unit building under contract, but am having second thoughts. I've purchased 3 other investment properties before, and sold 1 of them. So I'm not necessarily new, but far from experienced.
The property in question will break even after all current rents and expenses. The rents are under market value, and the leases will expire in Jan, Feb, March, and May of 2023. I'm expecting, after a conservative estimate, that after all the new leases are signed, it will cash flow $900-$1300/month total.
My question is, should the fact that it breaks even deter me from the deal? Is the cash flow after the rent increase worth it? I can't seem to find any other deals in the area that look any better than this.
My wife and I just sold our live-in flip, and want to put the profits to good use!