Need hand on a potential deal

[Matt Crow]

Thanks in advance. This seems too good to be true so I need some insight.

3 family for sale for $359,000. Verified that it's fully rented for $3500 gross/month.

Tenants pay all utilities except trash removal at 900/year.

We'd put down 25% ($89,750) and finance the rest.

PITI will be an estimated $2097.58/Month

It was built in 1972, the only unknown is one of the 3 boilers (2 replaced in last 3 years). Roof is 4 yrs old, etc.

We're going to look at it tomorrow, how does it look to this point?

[Richard C.]

Originally posted by @Matt Crow:

Thanks in advance. This seems too good to be true so I need some insight.

3 family for sale for $359,000. Verified that it's fully rented for $3500 gross/month.

Tenants pay all utilities except trash removal at 900/year.

We'd put down 25% ($89,750) and finance the rest.

PITI will be an estimated $2097.58/Month

It was built in 1972, the only unknown is one of the 3 boilers (2 replaced in last 3 years). Roof is 4 yrs old, etc.

We're going to look at it tomorrow, how does it look to this point?

 Depends a lot on the location.  Some towns, with significant appreciation potential, it could be a decent deal.  In others, not so much.

$3500 a month for an investment of $365k (including closing costs) is not great, even for New Hampshire.  I'm not saying you're going to meet the infamous "2% rule", this isn't the Midwest.  But still, nothing about that says, "Too good to be true" to me.  

So bottom line, if it is in Manchester, Nashua or almost anywhere North of Manchester or West of Milford, I'd say it is not a good deal.  Rockingham County?  I'd consider it.