First Deal Analysis

[Brett Van Leeuwen]

Searching my area for the right multi family investment has seemed impossible with the numbers I've been finding, until now... maybe.

Found a triplex built in 1895 selling for 330,000. The main building is a duplex with the bottom about 1150sqft and the top 1150sqft, both 3bd 1bath. The rent however is 1,200 for bottom floor and 900 for top floor. Without seeing the unit (this Sunday) the only difference I see is there is no dishwasher nor laundry. Is that worth $300/mo? Worth adding a stack set to top floor?

The 3rd unit is a "servent quarters" that is detached and is 2bed 1bath, 728sqft renting for $750. Possible option would be for me to live in the servant quarters for a year to get primary residence. I hear this is good, but what exactly are all the benefits?

So some numbers from this newbie that is I. The current income is $2850. If I put 20% down and get 4.375% that would put my principal/interest at 1,318/mo. Applying 50% rule, 2850/2 = 1425 - 1,318 = 107 cash flow. That might be acceptable for 1 unit, but for 3? No bueno.

The only "creative" things I've thought of is to either try and get the price closer to $300,000--maybe by going straight to the owner if I can find them, and offering 300,000 FSBO (when/if listing expires). Especially since it's been on the market for 300 days.

Or possibly try and get more than $900 out of that 2nd floor 3/1.

More details straight from listing:

Taxes: 2,985

Cap rate: 6.9

Insurance: 1174

W/s/g: 1893

Other expenses?: 189

Any help would be greatly appreciated!

Thanks,

Brett