Help analyzing a deal

[Chris Greenawalt]

Hi guys! I have a triplex that I am currently analyzing and would like some input. I am leaning toward putting in an offer but it’s my first deal and I am nervous. Am I suffering from “analysis paralysis?”

Asking is around 279k and I am going to shoot for getting it for 245k. I worked the numbers with 25% (61,250) down but my down is coming from a HELOC so I'm trying to work the mortgage to get as low down as I can and be around $1,500. Here are the numbers I'm working with. Mortgage (P&I, tax, ins) $1,480. One of the cons here is that current owner pays utilities (water, sewer, trash, heat... waiting on electricity #) which average to about $421/mo. For total expenditures of $1,901/month the units rent as follows

1 bed $700

1 bed detached unit

2 bed unit with a huge second floor master $1,050

Total income $2,450 - each unit is about $150 under market, total $450 under market.

With current prices my "cash flow" is $549 which, for now, will all go to paying down the HELOC

I plan to save part of my HELOC to be used for Vacancies and Cap Ex so all income will go to paying it down.

This puts calculating CoCROI and overall ROI if I sell at 5 years with 66,500 initial cash investment (down plus some small repair costs) I'm at 9.9% and 22.6% respectively. Does this sound like an ok move? Should I be more cautious with my first deal? Am I looking at all of this right?

I know I’m missing something. Let me know what else I need to tell. Thanks!