Help me analyze this deal !!

[Faysal Alam]

Okay guys , so I think I might've found my first deal 4 unit mixed use property right outside of Rochester NY , 2 store fronts that need a little bit of work , maybe carpeting . And 2 2 bedroom 1 bathroom apts above the store fronts , the price was originally at 50k , went down to 40k and now dropped to 25k . The upstairs apts are in need of flooring , one might need a kitchen , so looking at around 20k worth of work , according to owner , arv is around 120k . I see houses in the area recently sold for anywhere between 50-120k but none of them I see are mixed use buildings . I have 32k saved up , should I pull the trigger ? Also property taxes are around 3-4k . This would be my first ever real estate deal . Population for the town is 1750 as of 2014 , average rent is $660 . The property is across the street from the library , within 1-2 blocks radius of the post office , diner, pizzeria ,churches , dentists office as well as other small businesses , what other information do I need before pursuing this deal? And what precautionary measures should I take before actually purchasing , keep in mind this is my first ever real estate purchase , so I need a walk through of everything . Any input is helpful !! Thanks so much in advance !

[Larry Turowski]

@Faysal Alam First, never believe the seller.  I've had sellers tell me just paint and carpet and I get there and I think the place needs to be torn down.

Figure out what YOU want it to look like after rehab and how much that will cost you. And figure out the ARV for yourself. Western NY is awash with vacant store fronts. As part of this make sure the structure is sound.

Second, as for other information, how about will you be able to rent it?  Maybe the 2br apartments are too small and will have to rent the same as 1br.  Maybe the store fronts will stay vacant for years.  Maybe there are two dozen similar vacant buildings right around this one.  Western NY is awash with vacant store fronts.

Generally speaking, I'd shy away from a mixed use property as your first deal.