I need some advice on a 4-Plex 1bed/1bath before making a good or bad decision? This is my first property purchase and i am pretty nervous on signing a contract. I am not sure if i am missing something before signing then spending money on inspection/earnest money and any other due diligence ill need to do.
Offering - 190k (VA LOAN)(0 Down)
Rehab - 10-20k
Vac/Maint/Prop Management $360
Current Rents - $600/unit (Under Market) (Similar in Area $750)
Total expenses - $1,547
Monthly Income - $1800 (Living in one unit temporarily)
I am planning on moving out within 6-12 months so the income will increase. There are other 1bed/1bath renting in my area for $750 minimum. Current tenants leases end July 2022 about 10 months from this post. The numbers look good on my end but i have a feeling i am missing something. Once i move out and get an additional tenant and rent increase, my cash flow will improve significantly.
Monthly Income - $3000
Monthly Expense - $1600
Also side question. How would i go about Rehabbing a property that already has tenants living there? Would i just tell them i am fixing the place up and there will be people doing work throughout your apartment? Should i leave it on the property manager to figure it out? I Don't really know what to do and really confused on this part.
I would appreciate any feedback.
Any advice would be awesome.