Tripex - Needs work - Need advice

[Samantha Klein]

Hi All, I just toured a triplex this morning with $1,602 in total rents, the asking price is 135k but my realtor said if I can't get it for 100k with little or no money down, I should pass. 2 of the 3 units have not been updated since the 70s. All of the electrical are two prong and not grounded, the upstairs unit reeks of smoke and the blinds are literally rust/orange color from years of smoking, it needs a total gut. The seller and I have been in discussion about seller finance and she was kind of shocked when I told her I could not pay near her asking even with owner financing. Would this still be a good deal if I could get it for 100k, 5k down and just update the units as people move? Rents are also $150 or so below market on each unit. The place should cash flow approx 500-600 a month however I'm afraid the cost  of upgrading and updating will be significant. Can someone more experienced provide some insight? It has newer capex items. Thank you!

[Mike Sattem]

@Samantha Klein,

I would kill to find multi-unit that was updated in the 70's! In my neck of the woods everything was built in the Teens and 20's; so everything I buy is knob and tube wiring, lathe and plaster, etc. A quick and easy way to update this would be to install GFCI outlets at $15 each instead of re-wiring the building. Additionally, I think you will be surprised to find out how much of the smoke smell you can remove by pulling everything out but leaving the walls intact. Replacing carpets after sealing floors, walls, and ceilings with a good oil based primer and you can eliminate most smells. Additionally, pre-fab cabinets at Home depot can be bought in sets with counter for $1,000 to $1,500 per kitchen.