Triplex Unit - Deal Analysis

[Aniket Thakur]

Hi Everyone, 

Looking for insight on this deal.. It seems good to me so before I jump in I would really appreciate if there is anything missing from my analysis. The property is located in Western MA

Deal

Offer Price: $130,000 + closing costs

Down payment: $32,500 (25%)

Repairs: $15K

Cashflow: $2500 per month

Expenses:

Principal + Interest: ~500 (98,500 @ 4.75%)

Taxes: $220.00

Insurance: $100.00

Electricity: $30

Water/Sewer:  don't know yet Approx $100 per month

Vacancy (10%): $250

Property Manager: $200.00

Monthly Maintenance allowance (10%) = $250

Cash Flow: $950

Yearly ROI: 24%

[Nathan Emmert]

$30 a month for electric... on a triplex?  Are you just paying for a common area?  No gas payment?  How much is snow removal and grass cutting going to cost you?  Who pays for the trash?  Do you have an actual quote on insurance at that rate (if so, I may need the name of your agent!)

Frankly, it still sounds like a solid deal (make darn sure you double check those rent rates to ensure they are maintainable).  Even if expenses are a touch low, you'll be looking at a solid 10+% return... if you can do a cash out refinance you'd do even better.