Is a 4-plex I found for sale a good investement?

How is the best way to evaluate whether a certain 4-plex is a viable investement?Is a 4-plex I found for sale a good investement?
In a nutshell, find out what the units are renting for, calculate your loan payments on a monthly basis, divide your annual maintenance costs by 12 and add that to your monthly payment and subtract that total from the total monthly rents. If you break even or better, then go for it.





The biggest issue is getting loan approval. Banks handle this kind of loan way differently than a loan for your primary residence. Make sure you talk to a lender to know your options and payments before making the calculations above otherwise you would be wasting time. The listing agent should post the financial information for potential buyers to see.Is a 4-plex I found for sale a good investement?
There are many schools of thought on this and it is subject to many variables. The ultimate decision should be based on your ability to hold the property comfortably after all expenses.





Here is some additional info. Hope this helps.
What is the current rent and the potential rent after you buy it and make any needed repairs? Once you have the projected rent you need to subtract your cost of ownership: taxes, insurance, fuel for heat, water, sewer, maintenance, replacement reserves, etc. The result is called your NOI or Net Operating Income. Is there enough NOI to cover a mortgage? You should look at the ratio of your downpayment money vs. your return after your mortgage payment. It should be big enough to compensate you for your investment, your time and energy, and your risk. How much risk is there that the apartments might sit vacant or worse that a tenant might not pay rent? Being a property owner/landlord is not an easy business. If you are going to make this kind of decision, you should read 3 or 4 books about real estate investing from Barnes and Nobles first. If you are not willing take the time to educate yourself about the business you will not be successful at it.
Is a good investment
Conduct what is called a pro forma analysis. Look it up on google if you need to know how.