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Updated about 7 years ago on . Most recent reply
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Would You Buy a Property With Hopes of Higher Rent?
Hi All, here's a potential deal I would love some opinions on considering a fundamental decision must be made for it to be viable.
Triplex currently listed at $127k
Down Payment: $31,750
Gross Monthly Rent: $1,500 (500 each)
Estimated Expenses:
Mortgage: $500
Property Tax: $80
Property Management: (10%) $150
Water + Trash: $150
Repairs (5%) $75
Capital Expense (10%) $150
Vacancy (5%) $75
Total: $1,180 Monthly
Cash on Cash return: $3,840 (About 12% return on investment)
Property was built in the 1930's and states "could be rented for higher with work/repairs"
Average comp rents seem to be around $600-700
If I could rent each unit for $600, updated ROI could be up to around 20%...
Is this a deal worth pursuing?
Thanks!