I have never done anything like this before and I am looking for some advice. A four plex near me has attracted my attention in suburban Chicago. All units are 1 bedroom and 1 bath.
List price = $174,900 (Sold for $350,000 in 2006 and came on the market in April for $192,000)
Property Taxes = $6,000
Fully rented in a decent working class neighborhood across the street from a large manufacturing facility.
I don't know exactly what the rent is but similar 1 bedroom and 1 bath apartments in the same town are going for $750-$800.
The listing states that it has a newer roof,AC,sliding doors,freshly painted & has large rooms.
I was figuring at $170,000 purchase price with putting 20% down and at 4% interest my mortgage + property tax would come to $1,149 per month.
At what rent if any does this make sense? Is there something else that I should be considering?
Any and all input would be greatly appreciated.