Critique these numbers

[Joey B.]

I own 4 single family rentals. My last two have a total investment of 25,000 and 28,000. They rent for 650 and 700$ with monthly expenses of about 100$ each. This has been good money for me, but I have an opportunity with a triplex that I'm still on the fence about.

Here are the numbers:

- 90,000$ purchase price, house is 90 years old with newer roof, windows, doors, siding, furnances, and hot water heaters. All utilities are submetered. Owner pays sewer and insurance.

- 1425$ monthly rent, 300$ monthly costs

- The deal consists of 20,000$ down and 70,000$ owner financed at 3.75 for 10 years. Non recourse loan.

The neighborhood is probably a C+. It's on a long street where the north end is a bad neighborhood and the south gets better the further you go. It's about 70% of the way south.

On one hand I hate to do it because the returns aren't what I'm getting with single family homes, but on the other hand these owner financed deals don't just grow on trees. The intial returns are fairly low, but the long term seems decent.

What do you guys think?

btw, this is in central Ohio

[Jeremy Davis]

well what does the property appraise at? Is there a way to pay it down faster then 10 years? If one of the three apartments is empty will you still have the money to make your payment. Yes until you pay down your loan you won't make money but will you make it in the long run when you retire.