Triplex...to buy or not to buy

[John G.]

Hi,

I'm new to these forums and found it when I was searching and researching the question I'm asking.

I have always bought my rentals as forclosures or distressed properties and fixed them up myself and rented them (only 5 yrs experience)  This time a round I found a triplex that is all fixed up and fully rented.  I am having a hard time justifying paying double what I have in the past because its all fixed up.  (I think my purchase price 95K is still in the wholesale-retail realm.

The details:

negotiated purchase price 95k.  Rents for $1650/mo. operating expenses $542/mo (figured high). Mortgage expense $527/mo.

Its an 1898 old home but fixed up fairly nice.

I used the calculator from this website which came up with $580 of cashflow (after mortgage payment), 13% cap rate, cash on cash ROI of 22.66%. I just don't know what type of numbers I should be looking for when buying a ready-to-go property.

The numbers will be scewed a little bit as I would be using HELOC for my down payment on a 15yr 4% Conv. loan. I do own other properties so I could get a business loan too.

I'm lost where to go next or just jump in like I did on my other properties.

I look forward to utilizing this web forum as I gain experience to help others.

Any help on this one would be greatly appreciated.

John