$300000 /triplex 50% rule +$78, BP calculator $650 . . .

[Mark Beeson]

I have 3 SFU doing well. First venture into Multifamily. Area Cap Rate 9%, triplex cap rate 8%. Mostly concerned about actual expenses vs BP calculation of 5% each for expenses, vacancy and CapX. This is a VA loan 0 down, although I have $20,000 to chip in if necessary. This property has about 1500 sq ft of asphalt parking lot and the outside of the building needs some minor repairs. The monthly income is $3100 and BP calculator expenses of $2450 - $650 monthly cash flow. I have researched all the possible expenses and they are many. The building built in 1920 - gives some minor concern which I believe will be relieved with inspection and contractor repair esitmate. I just ran across a duplex deal for $38K 50% rule cash flow of $278. The deal may be gone BUT I think about how much more effective I can be with these kind of deals. Is the triplex worth going after? Almost seems to good to be true . . .

[Jaysen Medhurst]

First, @Mark Beeson, the 50% rule is not a replacement for actual deal analysis. I'd like to see all the numbers on the 3-unit, before offering any thoughts. 5% each for Vacancy, CapEx, repairs is too low, I think.

Also with a VA loan, you have to intend to use it as your primary residence, I believe.