3-plex numbers look great - what are we missing???

[Tanna Brodbar]

My partner and I have a 3-plex under contract in Ontario, Canada. Asking price was $179K; contract is $160K; CoC = 30%; gross revenue = $24.6K. My partner wants to wholesale it because it's in a market that we aren't familiar with, but I am more inclined to want to hold it given the numbers. We rarely see these kinds of numbers and I hate to pass it up, but financing might be a bit challenging. Here are my questions:

1.) These numbers are great. We have true expenses and income, the contract has all the right clauses to protect us, and the seller and real estate agent seem to be above-board. Do good deals like this really happen or should I start being suspicious? (I'm asking because we just haven't seen these numbers nor been successful in getting them under contract... until now.)

2.) We'll need creative financing to get this one going. Has anyone ever put together a hybrid hard money lending/joint venture deal?

3.) The property itself isn't all that "pretty"... But it does present as a solid performer in a good location and it has good tenants. Should we even be worried about the external look of the property as long as it's structurally sound and generally maintained?

4.) If we go the wholesale route, what's the best way to very quickly find potential investors? We only have a small network built to date and need some ideas to significantly - and quickly - expand our connections. Would really value advice on this.

Many thanks!

[Michael D.]

@Tanna Brodbar , it's certainly nice to use "actual" expenses that the seller provides, but keep in mind that they may not have been as diligent about repairs and maintenance as they should have been. This may be why the expenses are low and the place doesn't look so great right now.

As far as reserves, try to make up your own actual numbers for things that have a fairly well-defined lifespan. For example:

Roof: $10,000, 240 month life = $42/mo

Water heater: $1000, 120 month life = $8/mo

AC...

Furnace...

etc