Updated almost 7 years ago on . Most recent reply
Help me buy this 8-plex
I am new in REI and just bought my first rental property which was a duplex. I am thinking of scaling up right away while I still have the momentum behind me. I work full time and my wife is stay at home mom and the goal is real estate professional status for her to offset some of my income. I prefer nicer properties with minimal maintenance and quality tenants. I am looking at an 8plex with 2 bed, 1 bath each in my home town. The numbers posted with the for sale ad is this:
NetOperatingIncome 47130
OperatingExpense 26730
TotalActualRent 6155
Based on county records, This property was sold in 2001 for $450,000 and 2006 for $545,000. However in 2017 it was sold for only $380,000. Not sure why current seller is selling only 2 years after considering they bought at what I would consider a deep discount.
Considering these numbers , would you buy this property? How much would you offer? Thanks in advance