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Updated over 7 years ago,

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21
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0
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Nate Estelle
  • Indianapolis, IN
0
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21
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First Investment Deal Analysis advice

Nate Estelle
  • Indianapolis, IN
Posted

Hi everyone! I am an aspiring real estate investor and have had my eye on a triplex in my small town Indiana area for almost a year. The purchase price was recently reduced to $30,000.00, at which point my interest was elevated because I'm a full-time social worker so I don't have a lot of personal capital to work with. The concerning part for me is that it was listed for $42,999 March of 2016 but no one has jumped on it, making me believe there is something undesirable about this property. As a newbie, I'm not sure what it is yet. My realtor, a past property management colleague of mine, walked me through the property today. The downstairs unit is a nice 2-bedroom unit, upstairs has a decent 1-bedroom unit and a studio unit. 

The gross rent is presently $13,800, but I estimate it would be $15,000 at market. Tenant pays gas & electric on downstairs unit. Owners pays water, electric and gas on upstairs units, as well as water on the downstairs unit. Tenants currently supply their own appliances. Downstairs tenant just moved in paying $500/mo, and one upstairs tenant said he is moving out soon, paying $325/mo. Downstairs unit has washer/dryer hookups. Lease term is M-T-M. The property is located near main street in the small town in a good school district, and it has parking for each tenant but no lawn. Central heat but not air. County assesses the 107-year old property at $58,100.00, and last year property tax was $1,138.64. The plan would be to rent all three units. One insurance provider in town said they would not insure the property without a new roof installation and painting some exposed wood. 

Does this sound like a good deal? Any help from the pros is appreciated. I can get more information if needed.

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