I have found a 4-plex that I can cash flow at about $82 a month with keeping the current rents at what they are. I also figured everything high when I crunched the numbers. Now with fix up I believe that I can raise rents $100 per unit netting at least approx. $482 per month (probably more though). I was also thinking that if I do purchase this property I will raise the rent by $25 per unit netting me a total of $182 per month cash flow right now!
The thing is I’m just starting out and this will be my first property. Does this seem like a good idea? I mean it’s not alot of money right now but I plan on holding on to it for the long haul. I am going to make an appointment to see the inside of the property sometime this week. So its not a definate purchase yet either. The outside of the property looks sound from what I have seen and if I like what I see inside I will be taking an inspector with me the next time I go.
Just to let everyone know I will be keeping my normal job so I will still be able to cover some expenses if one of the units are not rented year round.
Any thoughts to put my mind at ease would be highly appreciated!
Thanks,
Jon