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Updated over 7 years ago on . Most recent reply

User Stats

342
Posts
142
Votes
Mitchlyn D.
  • Rental Property Investor
  • Jacksonville, FL
142
Votes |
342
Posts

Deal or Not on this Triplex with House on Lot

Mitchlyn D.
  • Rental Property Investor
  • Jacksonville, FL
Posted

Current numbers

- Annual Taxes:  $2,007

 - Unit 1 ($500)

- Unit 2  ($500)

- Unit 3 (currently vacant)--but i'll add $500 to the total for anticipation of gaining a future tenant

- House ($750)

  total:  $2250

- Ask price: $215,000(from $235K)

I'll probably have to house hack(via VA Loan) and move into the house. It's an older house but will have to be updated to my standards. The 3 units in the back are 1/1 with the 'possibility' of adding another 1/1 unit totaling 4 units. The neighborhood is a C+ and I only plan on living in the house for a year then moving out.

After running the numbers(10% each for vacancies, repairs and cap ex), it doesn't cash flows and is -$80.79.

Ideally, I want to raise the rents at some point i want to:

1 Update the house so I can get more rent

2. Add another 1/1 unit

3. Raise the rent to market levels ($550)

I see the potential but am a little afraid to make the leap.  Any ideas or suggestions would help as they are expecting a decision from me Today!

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