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Updated over 7 years ago,
Deal or Not on this Triplex with House on Lot
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!