This particular property has been repossessed by the bank and, as of yet, has no price on it. However, you are not likely to see a four plex in this area go for less than around $300,000 or higher.
You may want to talk to your West Palm Beach real estate agent and discuss what your investment parameters are. What kind of return do you expect? How much money are you prepared to put down? Are you prepared to be a landlord?
If you don't own a home of any kind, you may be able to purchase a fourplex using an low down payment FHA loan because it could conceivably be your primary residence. Just remember that the lower the down payment, the higher the mortgage payments.
If you have a primary residence somewhere else, expect to put down at least 30% of the purchase price for investment property.
If you have sufficient cash to purchase the property, think carefully before plunking it all down.
Yes, you will have no mortgage payments that way. However, your cash on cash return is likely to be lower than it would be if you took out a mortgage.
With a mortgage however, your actual cash return will be less. But you will put out less money to begin with.
These are ideas to take into consideration before investing.
Naturally, you will want to check the condition of the multifamily property to make sure you won't be faced with unexpected repairs. Even if the building checks out perfectly, expect to make occasional, unexpected repairs and budget for them accordingly.
And there's lots more. Before you do anything. talk to your accountant and / or your financial advisor. Chance are good they will offer you some valuable advice on the subject of real estate investment, because they probably have other clients with similar interests to yours.
Once you are comfortable with the idea that multi-family investment is for you, call a mortgage broker so you can get pre-approved for a mortgage. Or, if you're using cash, put together a proof of funds.
Then, call your real estate agent and look for a property that works for you.
Marc Jablon, the Jablon Team
RE/MAX Complete Solutions