Posted by GL - ON on July 29, 2003 at 15:34:50:
That price is WAY too high… $50,000 to $100,000 too high, and that would be if it were in perfect shape.
Anyone who buys that place will have BIG negative cash flow problems. That means not only will it not bring in enough to pay for itself, you will have to dig into your pocket every month for hundreds of dollars to subsidise your tenants.
There are some buys out there but you have to know how to recognise them when you see them.
I suggest you go to the main message board, archive search, and search for “GRM” and “Cap rate”.
If you learn about those 2 things, you will automatically be smarter than 99% of real estate agents, sellers and beginning investors.