this is my first ghetto property please Help me analyze this deal

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    so a four plex for 80K  just depends on how ghetto it is.. but genreally speaking ghetto or NO  600 a month renters can be highly transient and tough to manage

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  • William Dalton
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    Contractor · Rochester, NY · Member since 2016 · 18 posts · 10 votes
    8y

    the city is redeveloping 3 streets down a bunch of condos and town houses will be finished this summer. A couple of the business are redeveloping there store fronts.  so theres a little bit of progress close by. 

    And they tore down a lot of zombie property in the neighborhood.  I've helped a friend out with a 4 family in a bit nicer part of the ghetto, and i can see the potential with the cash flow.  I just know i don't have the experience with lower end places.  But finding people who get housing assistance seems like it can really pay well and consistently.  I know the right tenant is key, and this being my 6th house I am completely fine and financially safe on sitting for an extra month to get the right person in there. and not just fill the spot.  Am I ok in that thought process??

    the sales price will be 65k but im getting the roof included in the mortgage which is all from a private lender. 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    I find that the market prices for risk/reward  or your in an area of functional or economic obsolescence.

    if its your home town and you can self manage and want to do it.. seems Ok to me.. as long as your going in with your eyes wide open.

    I have helped many a C class operator scale their operations.. I just don't recommend it for out of area landlords relying on PM... only B or better for those scenarios at least in my mind..

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  • William Dalton
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    Contractor · Rochester, NY · Member since 2016 · 18 posts · 10 votes
    8y

    Agreed Jay. 

    I will be hiring a property management company but will still be  hands on.  And yes it's in my home town.  I've worked the numbers allowing for property management. 

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