Hi, I am a new investor and I couldn't be more excited to have found BP and the wealth of information found here. You guys have been so helpful and informative.
So here's my question:
As previously stated, I am new to this. I work a decent paying full time job with only a mortgage for debt but want to invest wisely and agressively. I am reading, listening and watching as much as possible to gain as much knowledge as I can. I am in search of my first "deal". A quadplex just came on the market yesterday and I want to know what would be a reasonable purchase offer in order for it to be considered a wise investment.
Here are the details:
Asking price: $200,000
Average annual taxes: $4,000
Owner pays water/trash: $130/month
Two units are 1/1/1
The other two are 2/1/1
Current occupancy 100%
Current gross income $2,660
Property is in good condition but value could potentially be increased with minor improvements.
I hope I have enough info. Please, feel free to say what comes to mind. I am more than open to advice and opinions. Also, I would like some beginner buy/hold real estate investing book recommendations. I have read a few but don't know what to read next.
Thanks in advance for your responses!
By what you have posted this seems tighter than I would want unless the seller would take a sizable discount. Not sure if you have used the BP multi-family calculator but you should give it a try for this a a few other properties.
There are so very many great resources here
Ruth, thank you very much for the book and link recommendations!
Bernie, I did use the calculator provided and saw that my numbers were indeed a little too tight. I suppose I need to further my education to determine what numbers and percentages I need to consider before jumping into this. Thanks for taking the time to give advice!
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