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Real Estate Deal Analysis & Advice

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Eddie L.
Pro Member
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Deal Guidance and Advice On My First Property

Eddie L.
Pro Member
Posted Jan 20 2021, 08:09

Buying my first multi-family and I'm in need of advice. The list price is 125k and purchase price is 115k. Three of four units are leased for a total of 1,325. The repair on the fourth unit is about 5k and repair to the roof is about 10k. The area is not appreciating and is home to many individuals on the sex offender registry. There was negative population growth of the city of about 2% in 2017. The current CAP rate is 8.6% and Cash on Cash is 17%. The sales comparison approach value is 135k and income approach value is 156k. Is this a good deal? Should I be concerned with high crime and quality of tenants?

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