First Timer! Should I buy.

3 Replies

Hello BP!

My name is Shane. I have been researching and learning for the past few months. I have offered on only one. The offer was low enough I couldn't really loose. So now I have come across one that almost checks all the boxes. 

So quick low down on my goals. I want to start investing in multi-family and then transition to larger multi-families. My budget at this point is 100K. I can afford the 20% down on that price. I'm targeting 12% ROI and with at least $100 cash flow per unit.



Asking Price not including Garage:

Asking Price with garage:

Asking with $50 per unit rent bump:

So with all of that information above does the place seem reasonable? Should I Offer?!? I sometimes wonder if I am being to conservative on the Repairs, capex, and etc. Am I being a bit cautious? Do some of you buy with the intentions of meeting your goals by increasing rent or renting a garage as well? Or do you buy only at your number and consider increases a benefit? I would go down in price a bit to solidify my confidence but the realtor claims she will not entertain offers below asking price. 

I feel I have gained all the knowledge from the famous @Brandon Turner but I need a splash of confidence from the community to get me over the hump. 


Hey Shane!
Welcome to BP! Your numbers look decent. I would check the big items (Water heater, HVAC system, roof, windows, appliances, etc.) If those look like they are in good shape, then your CapEx/Repairs budget is probably OK.

You could always offer 70 to 80% of asking and see what they say? Or if you think it is a good deal, go for it.  The last thing I would consider is the neighborhood - make sure you know what you are getting into.

I'd say go for it man! I just looked through other listings near Urbana (which are limited) and it looks good. There's only one other place for rent in town and it's a small 2 bed 1 bath for $585. I'd try to get $700 per month for it. It's a small town so you'll likely have longer vacancies, but they will probably stay a lot longer.

Thanks everyone for the push! In contract today. Got it for the 100k list. Wouldn't budge on price. Hopefully the dudilgence goes well. Just waiting for the real estate snowball to start rolling! Thanks again for the motivation!