Need Figuring Out if It’s Worth It... Triplex

[Michael Lyons]

An off-market deal was just presented to me and i want to see if it’s worth really looking into. It’s a triplex in a stable C+ neighborhood with potential for growth in Philadelphia asking $355,000.

I’m told the rents are $850x2 and $1,000 for a total of $2,700/month. 2 tenets are already in place (both $850) and $1,000 unit is unoccupied. I’m not completely sure on the taxes/insurance, but my guess would be taxes = $2,400/year and insurance = $2,000/year.

I haven’t seen what it looks like yet still working on getting in and seeing it, but the numbers seem like it may work. If i’m missing something or made a mistake please let me know and thanks in advance for any feedback.

NOI = $24,700

CAP Rate = 6.9%

ROI = 6.4% (ballpark 82k DP + closing costs)

CoCROI = 6.9% ($830/month cash flow)