4plex with renters for sale, bad idea in my situation?

General Real Estate Investing
1

I recently ran across a 4 plex for sale with 4 current renters. Each room is rented out at $450 each. After calculations with 20% down @ 6% I should have up to $423 of instant cash flow. The home is selling for $179,000 and if I put the money down would use up all my money available. Is this generally a bad idea in an experienced RE investors eyes? Should I save my up front cash and use to to buy cheaper rehabbed homes?

Without cash down I am not sure how my credit will hold up. I have a low 6 figure income but also a 38k auto loan and a 359k home loan (current living home). I am hoping that having another 179k house wont break me credit-wise. (credit is 699)

2

what is the appraised value of the property?

3

With a 699 Fico you should be able to finance the property at 100% going stated income. Your rate will be approx 1.5 - 2% higher so you need to work the math again to see if it makes sense.

Your primary residence mortgage will be a challenge (not a lot of lenders like to lend 100% on investment properties); but some creative leases could solve that.

I would also add a sellers concession to the contract so you can roll some of the closing costs into the new mortgage.

Good luck