Negative Cash Flow on MFH

[Matt Messer]

I am looking at a fourplex, that is listed at 117,000, Just based on Realtor's numbers and condition I would be looking to get the property around 105,000. Realtor said it would gross $19,479 yearly. I requested Schedule E's for the last three years and in 2011 and 2012 the owner took a $4156 loss and in 2012 $3975 loss. Gross income was 15,791 one year and 17,068 another. I am just trying to process that information, however to me it looks like this property is a huge money pit and I should stay away. Am I analyzing this right? Thanks for any help.

[Engelo Rumora]

@Matt Messer

Hi Matt,

I would stay away from anything that is not showing significant cashflow.

There are so many great deals to be had nation wide.

I am sure you don't go to work everyday paying your boss for the privilege of working for him. The same with purchasing property, every single property you buy needs to be paying you and putting money in your pocket.

Thanks for reading and have a great day