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Hey everyone! I just went pro and I am running the numbers on a deal my father and I are looking to take on. This will be our first rental property so I'd really appreciate any assistance going over my numbers or maybe connect with others in the area that may be able to help.

The property is a pretty large triplex in central Maine. It is currently not rented and needs a little bit of work. From what I've found it appears the seller is an out of state owner who purchased the property in 2018 for $35k and put quite a bit of work into it. It is currently freezing in Maine and the seller has the utilities turned off since there is nobody occupying the property.

This deal caught my eye because it is listed much lower than any 3 family that i've seen listed over the past few months. I've found a few comps in the area that have sold for around $220k-280k depending on condition and size, and this one is listed at $179k. This triplex is much bigger than the others, too. It has 3 large 3bd units, two of which have 2 bathrooms (potential for adding units in the future??). It doesn't seem to need much work, just cosmetic stuff it seems from the photos and the description on the listing. However, this property is not separately metered, and that is something I would like to take care of before renting the units, as well as the cosmetic stuff ofcourse. I've been looking into submetering each unit and I've found a local company that can do it and handle the utility billing afterwards. I put $20k in my repair costs assuming that should be enough to cover the submetering and supplies to spice up the units. I ran the numbers for after the renovations are finished, and it seems to cashflow pretty well, even with using conservative numbers in the calculations. Also, since we would be purchasing it with a bit of equity, and adding a bit with renovations, it would appear to have a good amount of equity as a safety net incase home prices drop, or to reuse for future investments.

I would really appreciate a second set of eyes or maybe some warnings I should look out for in a deal like this? Maybe some info on the submetering and renovations?

Lewiston, Maine

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