Deal analyses (Newbie)

[Alex Rodriguez]

Hi everyone, Im very new to the investing world and BP. Im 25, recently graduated. Ive been doing tons of reading and planning to invest in buy and hold (When/if the right deal comes around). Currently I am debt free, and have 35k saved. My goal is to invest in multi families to become financially free within the next 15 years. I have found a 4 plex 3/2, 2/1, 2/1, 1/1 built in 1937 for what was originally listed for 245k 1 month ago then reduced to 239k, however since I called the realtor all of a sudden the price jumped back up to 245K. My plan is house hack and live in the smallest unit through an FHA loan. Current total rents are 2650. Also what do you guys think about the price hike after i showed interest? the realtor told me "someone submitted an offer, but were holding off". To me she's obviously trying to get me to pay more than the offer she got. Another thing is she sent me several documents like income, Transfer disclosure statement, tenant estoppels, and seller questionnaire. 1 thing that was a red flag was that the floor has cracks in concrete. I've looked on BP for others with this issues and I see it can be a big hit or miss costing from 10-30k depending on severity if not more. I would need to get a structural engineer to really look at the foundation. Ive ran the numbers at different price points 200k would seem to be ideal, At 220k cashflow is $180/month, or should i just walk away? Ive attached the numbers I ran considering it needed no repairs.

[Trevor Lohman]

Wow did you just find a 1%+ rule in California? Nice @Alex Rodriguez

Is the property in Colusa?

I'm no expert but that won't stop me from chiming in,

When you say the floor has cracks in the concrete, what exactly does that mean. Is it a concrete floor? I haven't seen a concrete floor in a home so just curious, probably ignorance on my part. If it's a slab foundation with cracks in it yes I would definitely talk to a contractor or someone knowledgeable about that. Do you happen to know someone who is a contractor or at least pretty handy who could look at the house with you? I've worked on the good old pier/post foundations but never a slab so I'm no help there. 

Seems like a good deal if there's no major issues. Although your numbers are ran at 200k. I can't imagine they'd go that low unless they just way overpriced the home or it is a super motivated seller. (Or if the foundation is crumbling... joking)

If nothing else it sounds like a good way to lower your housing expenses and get exposure to real estate. I wish I could go back and do something similar. I think my wife has gotten used to our house so there's no going back to a duplex for me!

Good luck!