Two Tri-Plex deal - need advice

[Chris Mayfield]

There is a multi-family deal available in my area for 2 Tri-Plexes, built in 2010 that currently rent for $700-$750 per month.

Each property has Three 3 bedroom 2 bathroom units.

The asking price is $399,000.I was going to start with some single family homes that would be easy enough to put 20% down but I felt this one was sitting there for the taking!

I feel, as a new investor, this would be a great investment for someone that had 20% to put down.From what I have read there are many ways to get creative with financing and being inexperienced, I’d love to get some real advice from the pros on how I could do something to make this work.

The way I see it even if only 4/6 stay rented and it is in rent ready condition it would be a perfect buy…plus I’m sure there’s a good chunk to negotiate.

If I had 20% down my payments would probably be $2200/month and with 4 of the 6 units rented that would generate $2800-$3000 a month.

I’m looking forward to answering any questions or receiving any advice on how to go about this and to see if there is even a realistic way to make this thing happen.

[Darlena Jones]

Those are pretty tight margins.  You should be putting 10-15% in a maintenace account which brings your 2800 down to $2380.  That's only a net profit of $180 or $30/door.  I would either negotiate a signifcantly better price or walk away.