Fourplex - Wholesale or Keep?

[Steve L.]

Give me some feedback BP.

Most of my experience is in SFH flips, just started picking up some rentals and have 3 sfh's. All cashflow.

I can pick-up a fourplex for just over $90k in Southern California. Needs $30-$35k of work. Neighborhood is A part and street in a good area of a C city.

Rent: $650/mo x 4
All 2 and 1's (about 1,000 sq ft), good layout
Total Investment: $140,000
Probably would retail for $190,000 - $220,000
Using 50% rule, I get a cap of 11-12% and cash flows just under $100/door
Built in 1970's

I know it's somewhat irrelevant, but this same building sold for over 500,000 at the peak.

Fix-and-Flip, Hold, Wholesale, Pass? What do you guys think...

[Jon Holdman]

$125K for $2600 in rent sounds like a great deal to me. Be sure you're well below the current value, and that you can get tenants, but it looks like a keeper to me.