Updated about 5 years ago on . Most recent reply
To buy or not to buy
I can purchase a multi-family 4-door property for $145500. It is cash flowing $2000 with all 4 doors with tenants. It needs a new roof either now or for sure within 2 years. Estimated cost on roof is $10k. Its an old building with electrical panel manufacturer that is no longer around. Needs to change out cabinets in kitchen because of previous water damage. Dryer in each unit is vented into the attic which is not right. Previous owner has had this property for 8 years. He says tenants are happy and he has not had any issues. I ran the rental property analysis, it shows about 13% COC with having to install new roof. I guess I'm just worried about the electrical panels even though there is no issue right now. And the fact of having to install a new roof and feel I should deal with the venting into the attic. Plus I think the purchase price to too high. Thoughts? This would be my first purchase in real estate.
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The expression "cash flow" usually refers to the amount of cash left over every month after all expenses are accounted for. What this investment promises is $2,000 in gross monthly rents. I am not trying to be grammar police just trying to help you to help clarify your question.