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Updated almost 8 years ago,
First Triplex Investment - Is this a good deal for me?
Hello Everyone. Hoping I can get some feedback on this deal. List price was $132,900. The seller accepted my offer of $123,000. I'm required to put 25% down. It's fully rented and tenants pay all utilities.
Rents per month: $600, $650 and $675
Taxes are: $225/month and insurance is $200/month
Inspection just completed and there is a bit of work that needs done. New roof, gutters, downspouts at $18K, chimney work $1100, large tree removed $4,000, 3 furnaces are old that will cost $2225 per unit, two water heaters need replaced at $750 each, electrical work $1500, and some asbestos remediation. Grand total is approx $30-35K.
All of the work doesn't need done as soon as we purchase but roof, gutter and chimney work will.
It's time to talk to seller about the inspection. Looking to negotiate with seller and hope to get 6% seller assist to give us $7K and then lower price to $115. And for him to remediate the asbestos (it's in two fireplaces and a tile floor in basement). Not sure if he will accept.
The ROI looks good to me on this property. However, now that we have a house that has been neglected and is in need of some repair cash, is it still a good deal?
Look forward to hearing feedback! thanks