Feedback needed on fourplex as buy and hold investment
Dear BiggerPockets community,
I am looking for feedback on a just listed four family property in a less than desirable location (C neighborhood) with some criminal activity. Building is 60 years old but in decent shape, roof to be replaced in 5 or so years.
Each unit is two bedroom at $550 rent/mo - fully rented, separately metered. Tenant only responsible for gas/electric. The property is listed at $110,000 and I would NOT need to do any immediate rehab. However, it is in a flood zone so insurance would be higher. Financing would be 25% down payment plus 30 year mortgage at around 4.5%. At this time, the current owner is not providing expenses, vacancy history, tenant details, repair history, etc. I am sure once we made them an offer that their answers would be more forthcoming.
I did find out that this property is being sold due to a dissolving partnership and the price is negotiable, but not a fire sale. Also, the current owner bought this property for $70,000 in 2013.
Based on this and below information, I was thinking about making an offer of $80,000. What are your thoughts, BP? Is this too low/high? What else should influence my offer? I look forward to your responses.