Analyzing My First Investment Property

[Kyle Fedewa]

I am currently looking at purchasing my first investment property in the greater Lansing, MI area. My realtor sent me a property that has not yet been listed, 3 duplexes all next to each other, asking price is $229,000, each unit is a 2/1 and currently rents for $585 with landlord paying water and sewer($50/mo per unit). Subtracting all the numbers he gave me, I’m showing it clears $2,358.15/mo before any debt service or cap ex. Also, these were built in the 70s and all in seemingly good shape. Will need roof in a couple years, but overall good shape. Obviously there are a million variables, but on numbers alone, what are your thoughts on this? The only thing that is holding me up, is the cap ex. It is out in the country, so the rent is low and correspondingly the price is low, but all the cap ex costs will be the same. Any advice or input would be greatly appreciated. Thank you!