Updated about 17 years ago on . Most recent reply
Opinion wanted on 4 plex
Hello all,
I am getting ready to purchase my first property and I was hoping to get some thoughts on the opportunity that I have. I was going to live in one of the units for the sake of getting an FHA loan.
Purchase Price: $170k
GAI: $33k @5% vacancy (This includes the rent I would pay. Rents for three of the units are $200 a month below market average)
GAE: $11k
P&I: $13k
Cash Flow: $9k
In my novice opinion I think this is a good investment for the $5k that I would need to put down. No immediate work to the property is required. I would like to put in new windows to justify and increase in the rent to get it up to market average because I was surprised with the quality of the units for such a low rent.
My goal with this property would be to increase the rents and then leverage the property to purchase additional investments. Any opinions would be greatly appreciated. :D
Regards,
Kevin