Triplex Purchase Help

[Ryan Williams]

Good evening everyone! I am a newbie and working on my second deal. This triplex is located in Stillwater, OK (home of Oklahoma State University). Each unit consist of 1 bed and 1 bath and rent for $450/month and listed for sale for $110,000. I am thinking about renting 2 of the units as long term leases and 1 doing a short term airbnb type. Unit is located 1 block from downtown shopping and just over a mile from OSU campus. Just wanted to reach out to this to see what I'm missing. Is this a good deal? What type of financing could I get? My lender is quoting me a conventional loan at 5.8% with 20% down. Thanks in advance for any help you can provide.

Ryan Williams

[Lara White]

@Ryan Williams The conventional loan rate seems a little high - is there any reason (credit, DTI, etc) that it would be that high? Most of my local lenders have been quoting my investors around lower 4% (I don't know today's rates for them exactly), but I don't believe rates have shot up that much in the last few days? I'm not familiar with the Stillwater area enough to give help on that front. What does your local realtor say about it? I've seen that property on the MLS for a couple of months, and I know it has fallen out of contract at least once. Did the agent find out why it fell out for you? Have any previous inspections been done? How long are the renters in there for? (Month to month, or long term lease?) How will you property manage? (someone local, or will you do it long distance) Do you know if it needs repairs (it's a 1940's home)? What do the disclosures say about lead based paint, asbestos, is the electrical and plumbing original or have they been updated? (if they are original, that could be something you need to consider as an expense and will need replacing). How is the roof, and foundation?