Looking to buy my first property! ** Trplex**

[Eric Proulx]

Hi BP,

Long-time lurker but I think I found the "One" to start my REI career!

Here goes:

It is a Triplex built in 1950, I haven’t had the chance yet to visit it but it seems in decent shape. I might need to do some finishing touches but overall not that much. I’m going for the buy/hold and rent. Neighborhood would be around B I guess but that’s a really rough estimate since my experience in evaluating neighborhood is quite low. (Extra info if it can help I’m in Canada).

Here are the numbers:

Purchasing price: 200k

Down Payment: 20k + Closing cost of 2500$ + Estimated Repair of 5k

Income:

Conservative rent possibility: 1900$/Month (for the 3 units), the owner list as 2125$ but in my opinion this is way too much compared to what rents go for in the same neighborhood and its listed as “potential Rent”

Expenses:

P&I: 762.94 $/Month and PMI for 16$/month

I've calculated 5% for Repairs/Vacancy/CapEx so 285$ a month

10% for management even thought I plan on managing it myself since its so far out and I want to learn as much as possible.

Insurance 80$/Month

Property Taxes of 375$/month

With those numbers I’m guessing I’m conservative… I hope so since with those number I would be cash flowing around 190$ a month (So not that much to some of the investors on here), which is less than a 100$/door suggested by some people but around here the 2% is impossible to find.

So I’m basically looking for something I missed and some reassurance in the process I guess!

Thank you for taking the time to read trough and maybe giving out your advice.

Eric