Analysis 3 unit building

[Amit Rana]

Hello,

I bought a 3 unit building 6 months ago before I discovered Biggerpockets. After reading this Forum, I feel I may have made a poor investment and needed some help on analysis and also what to do next. Though I had crunched the numbers before buying, I under-estimated the expenses (didn't know about the 2% or 50% rules).

Units: 3

Price: $760,000

Down Payment: $152,000 (20%)

Annual Rental Income: $64800

Annual Expenses (incl taxes, ins, mgmt fees): $15,000*

Net Operating Income: $46,498

Annual Mortgage: = $37,512

Cash Flow: = $8,986

Cap Rate ($8986.42 / $152,000): = 5.9%

I have had to do around $4,000 worth of repairs so far on various things (not included in above annual expenses). But I got a $10,000 credit from seller when I bought the place for repairs (based on property inspection report). Also I have a real-estate license and so got commission when I bought the place. Both these credits have not be included in above analysis.

1. Any thoughts on the deal?

2. The property is in a great part of time and rents/tenants will be generally good and I live only 10 mins away, so has been easy to manage. However building is old and I do anticipate continuous repairs and such. I was planning on 'buying and holding' this property long term but am questioning that now. Any insights would be appreciated!