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Updated about 8 years ago,
REI Beginner - Starting out in a Triplex?
Hi everyone, long time lurker - 1st time posting
Basically I've been in the market for a few years saving up for a home while living with my parents still - I'm 24 years old. I have around 85k cash in savings for this purchase. My current realtor found a triplex for me and they're asking 282k. 3 Units, all 1Br/1Ba and It's in an appreciating town that I'm happy with the location as i would like to house hack this property (currently off market) Because it's short notice and on holiday, he briefly emailed expenses/rents/etc although i will be getting the full past few years breakdown this week when we meet. Here it goes.
Price:
Asking $282,000
Taxes: $4100
Insurance: $1100
Gas/common area electric: 2500
Water/Sewer: 2500
Trash: $480
Expenses: $10,680
He also explained that there is a clothes washer/dryer in the basement that is shared and it's non-coin operated. I would think about changing that to a coin operated one.
Income:
1st Floor: $985
2nd Floor: $1105
3rd Floor: $940 - I would like to take this one as it's the cheapest and the current renter is month to month.
Gross rental income = $36,360
The property is in overall good shape. I ran numbers using the BiggerPockets Calculator and it ended up being conservatively around a high 9-low 10 cap rate. When I ran the numbers for living in the unit, again using 5% vacancy/5% repairs/5%capEx it came out to me paying average $350 dollars while house hacking unit #3. Am i on the right track here in regards to crunching the right numbers that were given to me? Any feedback is appreciated.