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Posted by Sean on August 23, 2001 at 24:28:04:

Beginner questions from a beginner. I am looking into investing in rental properties.I have no practical experience. I live in California in the center of a very expensive and hot market. I have my eye on a 4 plex listed for $576,000. Rents are below market currently. I believe I could do some rehab work on the building and get the rents combined at somewhere near $4500 per month. New property taxes are 1.25% here. I can get financing at 7.25% fixed with 20% down payment. There is a separate attached landlord owned coin-op laundry room on the building. The tenants pay everything themselves except garbage. I have some of my own ways of analyzing this deal but am seeking advice from any of you more experienced investors.

1. What is the most you would offer to create a positive cashflow situation immediately?

2. What would it take to make this a good deal?

3. I am afraid if I put less than 20% down it will not make for positive cash flow.

4. I hate the thought of tying up so much money, any other thoughts??