16 Jul How dumb would it be to put every last dollar we currently have in a 12 unit apartment building as a first investment?
As title states, I’m in a pretty unique situation to pickup a 12 unit building from a friends father looking to sell to someone like me rather than some big Corp wanting another profit stream.
I fully trust him as I’ve known him for many years and am friends with his son. Seller’s deceased father developed the building decades ago so it’s been in his family for a long time. He’s a general contractor and has an outstanding work reputation so I know the building has been cared well for over the years.
He said it’s likely to appraise for 550k and the fully leased units rent a little under market at 575/month. A Commercial loan would likely require around 25% down which currently is all the liquid cash I have available.
Together we net about 8.5k a month from our jobs and have about 3k in monthly living expenses so we could recoup emergency savings pretty quickly and we could increase rents pretty easily as well within the first few years.
Looking for some advice on if I’d be headed for disaster or not based on this info.