Single Family Homes or Apartments? Mentor please...

[Raul Ruvalcaba]

Hello,

For years I been trying to convenience my mother to invest in triplex or a small apartment complex (5 units). However, she has always said we aren't ready for that type of investment... mostly investing a single family homes.

Yesterday, we sat down and saw some multi units and apartments online. Most of them are located in the not too good side of town... We started calculating approximately that one unit might used to pay the water and trash... another unit or 2 to make the monthly payment and the rest would be profit. I know it all depends on the number of units.... but I figured tenants at those types of apartments pay around 500-600 per month.

I am currently looking at a 6 unit complex. According to the listing agent, 5 units are rented. 2 units rent for $500 each and 3 for $450= $2,350.00 per month. In that side of town, it might be the highest tenants might pay. Maybe $550...

The 6 unit complex is for $160k. We have the 20% down. That would leave the payment of approximate less than $700.00.

For this type of complex, approximately how much would the landlord be expected to pay for in utilities? Water and trash service? I know it's hard to estimate... but an approximate figure

What I don't understand... why aren't other investors jumping into this deal? It's been in the market for 3 months.. lol.

Thank you