Too good to be true?
Let me start by saying I am new to real estate investing. I have been educating myself as much as possible with podcasts, videos, blogs.. basically everything I can get my hands on. I've been analyzing deals as much as possible, looking for my first investment property. I came across a property that has the potential for insane cash flow (I mean upwards of 40% ROI), but that is working under the assumption that all 4 units would be rented out; the two units not occupied will also need some rehab. I know vacancy must be taken into consideration and I plan on taking A higher % out than normal for it. The property is in a nice(er) part of a town but I am concerned about getting the units filled. Currently two units are filled with each paying 600 a month, and I could get this property for around $50k. Am I just having new investor butterflies? It would still cash flow with only 50% vacancy. I would hate to ignore the potential for such a huge ROI because I was overly concerned the other two units wouldn't be filled. What is your normal vacancy rate? Have you ever passed on a good deal because you feared prolonged vacancy?
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Central PA has nice parts?