Too Good To Be True?

[Izzi S.]

Hi Bigger Pockets!

I have been analyzing deals for some time now and I think I finally found a deal that seems to be worth buying. YET, I am nervous that I am missing something big that will make this a flop.

Deal seems to be profitable day 1 ( According to my conservative calculations at least 10% Cash ROI with an possible 20 % if all goes well). 100 % occupied with "long term tenants".

The property is a multi family in Michigan.  

I am nervous about things like not being up to code or having to install fire suppressant systems... Who knows.... its basically the fear of the unknown.

Any advice for a newbie?

[Joe Villeneuve]

I have two pieces of advice for you:

1 - Learn how to analyze properties so that you are confident.  In the case of rehab, get a team member that can both do the analysis (their eyes and knowledge) for you, and teach you at the same time.

2 - Never use the words "Sounds too good to be true" as an investor.  Either it is, or it isn't a good deal.  If you don't know, then do whatever it takes so that you do know.  You should never be held back because of "fear of the unknown".  Go eliminate the "unknown", and you will eliminate the "fear".