Purchasing and owning a Quadplex

[Bryan Rodriguez]

My wife and I have decided to purchase our 2nd property, Quadplex. This is going to be our 1st landlord property. The Quadplex we have in mind has significant positive cash flow after mortgage and all operating expenses >$400/month. However this property is located in unstable area with a very poor reputation, fortunately closest neighborhood is promising single family home area with a lot of houses getting rehabbed. Two local realtors have recommended not to purchase the property due to poor reputation of the area and our own realtor said he's not going to manage this for us. We have money allocated for initial repairs if needed and we will have handy man on site. Based on our situation, is this investment worth the risk? If so, what are the strategic ways to lower our risk? Thank you in advance!! Hope to hear all the great knowledge

[Troy Fisher]

Well, the first question is; is $400/month great when owning a 4plex? -- Usually not. One vacancy in a bad area for more than a month can wipe out your cash-flow and than add on a repair too that.

Here in Vegas you don't find Quad's in fancy places. They are usually pockets of minorities living together with family, and from the outside it can look rough. But when In reality it's pretty safe, because you have extended families living close by. You just need to make sure you aren't investing in a warzone unless you want to be a warzone profiteer.

Here's the advice I would give you: Visit the area during the day, and again at night. If it feels just as safe than do some more digging. See if your local municipality has crime stats for the area and see if the property is in a high crime area. Listen to naysayers because they can help drive you to prove that this could be a great investment.